Eli Lilly (LLY, Financial) recently announced encouraging Phase 3 trial outcomes for its type 2 diabetes medication, orforglipron. The data indicates that the drug holds a strong competitive edge, particularly in weight loss management, a key concern for investors. The trial demonstrated that orforglipron produced a 6.3% reduction in weight from baseline at its highest dose, closely aligning with existing benchmarks like Wegovy and market expectations of 5%-6% weight loss.
The company noted that the drug's efficacy in lowering HbA1c levels was impressive, yet the weight reduction aspect remains the center of attention. Additionally, the tolerability of orforglipron appears favorable, with a manageable discontinuation rate of only 8% observed at the highest dose.
Following the release of these results, JPMorgan continues to maintain an Overweight rating on Eli Lilly's stock. Reflecting investor confidence, Eli Lilly shares have seen a significant rise in premarket trading, surging 11%—an $82.10 increase—bringing the stock price to $817.00.
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.
