In pre-market trading, shares of Viking Therapeutics (VKTX) are experiencing a downturn after Eli Lilly (LLY, Financial) released promising Phase 3 trial results for its novel diabetes treatment. The trial, ACHIEVE-1, focused on the oral small molecule glucagon-like peptide-1 receptor agonist known as orforglipron, targeting adults with type 2 diabetes who struggle to control glucose levels through diet and exercise alone.
According to Eli Lilly, orforglipron distinguishes itself by being the first oral treatment of its kind to reach successful completion of a Phase 3 trial without the need for accompanying food and water intake restrictions. This development reflects a significant advancement in diabetes management, offering patients a more convenient treatment option.
The positive outcome from Eli Lilly's trial has exerted downward pressure on Viking Therapeutics' stock, as investors react to the potential competitive impact on Viking’s position within the diabetes treatment landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Eli Lilly and Co (LLY, Financial) is $1,014.97 with a high estimate of $1,190.00 and a low estimate of $800.00. The average target implies an upside of 38.11% from the current price of $734.90. More detailed estimate data can be found on the Eli Lilly and Co (LLY) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Eli Lilly and Co's (LLY, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Eli Lilly and Co (LLY, Financial) in one year is $1126.68, suggesting a upside of 53.31% from the current price of $734.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Eli Lilly and Co (LLY) Summary page.
