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Eli Lilly & Co. upgraded at Jefferies - sees near-term revenue and EPS upside

Published 08/09/2023, 11:03 AM
©  Reuters Eli Lilly & Co. (LLY) upgraded at Jefferies - sees near-term revenue and EPS upside
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Eli Lilly & Co. (NYSE:LLY) was raised to Buy from Hold at Jefferies on Wednesday, with analysts raising the price target to $615 per share from $430.

The upgrade follows two positive data points for the pharmaceutical company. The analysts explained that "SELECT showed outstanding 20% CV RR," exceeding the firm's base case of 11-13%, while "Mounjaro beat consensus est by ~28% in Q2, driven by volume & continued GTN improvement."

"What a day for the GLP-1 class. We were skeptical that NVO-SELECT would show 15%+ benefit (our base case was 11-13%), but we were wrong. SELECT had a home-run result," they wrote.

"We think NVO opens the door to broader payer adoption & potential CMS coverage for the GLP-1 class. Thus, we're meaningfully boosting our Mounjaro peak sales est to $70B & orforglipron to $8.5B," they added.

Jefferies also sees upside to LLY's near-term revenue and earnings per share.

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