Bernstein Reiterates Outperform Rating on Eli Lilly (LLY)

Bernstein SocGen Group analyst Courtney Breen reiterated an Outperform rating and $1,300.00 price target on Eli Lilly (NYSE: LLY).

The analyst commented: "Can GLP-1's cure everything now? Brenipatide goes beyond obesity & resiliency in incretin leadership; We are writing this note to help frame the “beyond obesity” opportunities for incretins & Lilly’s TAM fragmentation strategy. Recently, we have seen Lilly initiate new late stage trials in alcohol use disorder, asthma & smoking cessation, while Dave Ricks (CEO) has spoken of the potential for incretins in mental illness conditions such as Major Depressive Disorder & Bipolar. With these signals from Lilly, the negative EVOKE trials for NOVO, and growing real world evidence - we take this chance to look beyond the imminent oral expansion to future leg of growth & resilience for this market. Our Alcohol Analysts also chime in on the trends in Alcohol & the relevance of incretins for this particular indication.

Lilly is thinking big when it comes to their incretin pipeline - aggressively advancing beyond current leading agent tirzepatide to new assets & now to an asset (Brenipatide) that may be more optimized towards CNS specific health-outcomes, beyond the core of weightloss & cardiometabolic focus of GLP1s today. We continue to be impressed with Lilly’s strategy- we see their research and development strategy supporting a more durable & resilient leadership position over the long-term as the incretin TAM matures - delivering the best agents for multiple subsegments of patients (Exhibit 1). These choices, while hard to fully quantify (as we wait for the specific data readouts) give us confidence that Lilly are set-up well to grow through the next decade."

For an analyst ratings summary and ratings history on Eli Lilly click here. For more ratings news on Eli Lilly click here.

Shares of Eli Lilly closed at $993.64 yesterday.

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