Deutsche Bank has issued an optimistic forecast for Eli Lilly (LLY) and raised the pharmaceutical stock’s rating from “Hold” to “Buy.” The price target was raised by $300 to a total of $1,025 per share. James Shin, an analyst at Deutsche Bank, explains the pharmaceutical company’s forecast and outlook at Catalysts.
Shin says the biggest reason for the call is Eli Lilly’s improved visibility. He explains, “They had inflated expectations and they exceeded them,” pointing to the GLP-1 weight-loss drug Mounjaro, which emerged from an FDA (Food and Drug Administration) bottleneck and hit its benchmark goal of one and 1.5 times the marketable dose.
“It’s a great background, isn’t it? Demand exceeds supply. You sell everything you have. It’s just a good story,” he adds.
Shin explains that despite improved supply, Eli Lilly has shown that “you can’t just go to the pharmacy and get everything off the shelf immediately.” As the pharmaceutical giant focuses on meeting demand in real time, it is concentrating on building new facilities and investing in its manufacturing capacity.
Morgan Stanley named Eli Lilly a top pick last week, saying the company has the “strongest growth profile” within its coverage universe.
Click here to watch the full episode of Catalysts for more expert insights and information on current market events.
This article was written by Melanie Riehl
