HSBC upgrades Eli Lilly to Hold with bear case played out

HSBC analyst Rajesh Kumar upgraded Eli Lilly (LLY) to Hold from Reduce with a price target of $700, up from $675. The firm believes Orforglipron’s ATTAIN-2 Phase 3 data in diabesity offers a clear commercial path for filing and commercialization. The data demonstrates a competitive efficacy profile with marketed oral drug Rybelsus, the analyst tells investors in a research note. HSBC increased estimates and sees “sensible” market expectations for Orfoglipron following consensus cuts. The bear case has played out and there may be upside potential to consensus estimates if the obesity market maintains price discipline, contends HSBC.