Opinions
David Burrows
Eli Lilly & Co.
LLY-N
SELL
Nov 06, 2024
Stock price when the opinion was issued
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Plethora of ideas. Part of the story on cancer. Weight-loss drug is in the lead, and a pill instead of injection is the ultimate goal. Earnings from weight loss will double in 3 years, and then they still have all the other drugs in the pipeline. Yield is 0.70%.
(Analysts’ price target is $996.37)The more successful of the GLP-1 stocks compared to NVO. Decent entry point. Trades in the 30s on forward PE, so there's a strong expectation of prescription growth; every reason to believe that's going to happen.
Be cautious on position size; don't be aggressive. Stock was down 10% yesterday because NVO made a deal with CVS to become its prime recommended product for obesity. So NVO is starting to compete more on price.
Premium contentThis big pharma company has a host of weight loss GLP-1 medications that it will soon release progress reports on later this month, some of which have already received approvals to develop. It trades at 27x forward earnings and supports a 77% ROE. We recommend setting a stop-loss at $703, looking to achieve $987 -- upside potential over 20%. Yield 0.7%
(Analysts’ price target is $987.22)
Got stopped out recently at $840. Below 200-day MA. RSI versus the market has rolled over. Backdrop for the pharma sector is behaving very poorly. He's going to wait and let the traffic clear.