Goldman Sachs analyst Asad Haider has maintained their bullish stance on LLY stock, giving a Buy rating yesterday.
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Asad Haider has given his Buy rating due to a combination of factors, primarily driven by the promising results from Eli Lilly’s ATTAIN-2 trial for orforglipron. The trial demonstrated significant weight loss in patients with obesity and type 2 diabetes, surpassing expectations and outperforming a similar trial by a competitor. This positions orforglipron favorably in the market, particularly in the oral class segment, both in the US and internationally.
Furthermore, the safety profile of orforglipron remains consistent with existing GLP-1 agonists, with no new adverse effects observed, which reduces the risk associated with its use. The positive trial outcomes are expected to facilitate regulatory filings and potential approval, enhancing Eli Lilly’s market position. These factors, coupled with a favorable valuation using a 26.0x P/E multiple, support the Buy rating and the projected 12-month price target of $876.
Based on the recent corporate insider activity of 124 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LLY in relation to earlier this year.