Eli Lilly's (LLY, Financial) stock experienced a decline after news emerged that Novo Nordisk (NVO) has submitted an oral version of semaglutide for obesity treatment to the U.S. Food and Drug Administration earlier this year. While specific details about the submission, such as dosage and form, remain unclear, analysts from Citi speculate it might be a high-dose form of Rybelsus.
Citi's analysis suggests that the market reaction may be more negative than necessary. They highlight that Rybelsus has struggled due to food effect limitations, which have affected its market performance. In contrast, Eli Lilly’s orforglipron demonstrated significant promise with a 14.7% weight loss efficacy over a 36-week period during its Phase 2 obesity trials.
Despite the recent dip in share price, Citi continues to recommend purchasing Eli Lilly's stock, indicating confidence in the long-term potential of its obesity treatments compared to competitors.
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 $1,016.05 with a high estimate of $1,190.00 and a low estimate of $800.00. The average target implies an upside of 24.21% from the current price of $818.02. 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 $1126.67, suggesting a upside of 37.73% from the current price of $818.02. 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.
