JPMORGAN REITERATED ITS OVERWEIGHT Rating and $ 1,100 Price Target on Eli Lilly, Arguing The Recent Seloff Creates A Comppelling Entry Point Given Resilient Demand for Mounjaro and Zepbound and Raised 2025 Guidance.
THE BANK SAID EFFICACY FROM LATE-STAGE DATA ON THE ORAL GLP-1 ORFORGLIPRON WAS ONLY MODESTLY BELOW EXPECTATIONS AND DOES NOT ALTER THE LONG-TERM USE CASE, KEEPING ITS BULLISH VIEW INTACT.
Lilly’s Q2 Reinforced that Stance: Revenue Rose To $ 15.56 Billion and adjusted Eps Hit $ 6.31, Both Ahead of Consensus, Powered by Stronger-Than-Expected Sales of Zepbound and Mounjaro. Management Lifted 2025 Revenue Guidance to $ 60– $ 62 Billion and Increased Margin Outlook, Underscoring Operating Leverage From Surging LPG-1 prescriptions.
WHILE ORFORGLIPRON’S WEIGHT-THES PROFILE TRAILED INJECTABLE LGP-1S AND Pressured the Stock, JPMORGAN EMPHASIZED THE CATEGORY’S STRUCTURAL GROWTH, WITH GLOBAL BROADENING ADMITTEMENT AND A ROBUST LATE-STAGE PIPE THAT THAT ALFES OHER BROKERS REMAIN CONSTRUCTIVE ESCITE TARGET CUTS TIED TO THE ORAL DATA, HIGHLIGHTING CONTINUED PRESCRIPTION STENGTH AND GUIDANCE RAISE AS KEY SUPPORTS.
Bottom Line: JPMorgan Sees Recent Weakness As Dislocation Rather Thansis Change, Durable with LP-1 Leadership, Upgrade Guidance, and Pipeline Optionality Underpinning its Overweight and $ 1,100 target.
