Lilly gains after Berenberg upgrades to 'buy' on obesity pill momentum
LLY•Diabetes approval could add demand
Berenberg expects the imminent diabetes approval for Foundayo, an oral GLP-1, to unlock significant demand.
Consensus view and stock performance
The stock is rated "buy" on average, with a median price target of $1,347.5, according to data compiled by LSEG. As of the last close, the company was up about 6% this year.
Berenberg lifts Lilly rating and target
Shares of drugmaker Eli Lilly rose about 1% to $1,147.35 in premarket trading after Berenberg upgraded the stock to "buy" from "hold" and raised its price target to $1,400 from $1,220, which represents about 23% upside to the stock's last close on Monday.
Obesity pill momentum supports the call
The brokerage said Lilly's momentum in oral obesity treatments helped drive the upgrade. Lilly said on Monday it has captured more than 30% of new patients in the U.S. market for oral obesity treatments, narrowing the early lead gained by Danish rival Novo Nordisk with its Wegovy pill.
