Despite a recent decline, Eli Lilly (NYSE:LLY) traded higher for the third straight session on Friday to record the biggest intraday gain in nearly two months as Street analysts issued bullish views on the pharma giant.
After losing ~7% since its recent peak in mid-September, the weight loss drug developer has added ~4% this week, including ~3% on slightly below-average volumes on Friday.
Bank of America lifted its price target on LLY from $600 to a Street high of $700 on Friday, noting the company’s potential in the weight loss space, where it is set to compete with Novo Nordisk’s (NVO) obesity therapy, Wegovy.
Analyst Geoff Meacham opts to remain bullish on the stock based on a potential FDA label expansion for the company’s obesity therapy, Mounjaro, in Q4 2023.
“LLY shares have been under pressure, but we expect continued clinical and commercial success to drive strength,” Meacham wrote with a Buy rating on the stock.
Meanwhile, Seeking Alpha Investing Group Leader Daniel Jones launched his coverage on LLY on Thursday with a Buy recommendation, citing its recent decision to acquire cancer drug developer POINT Biopharma Global (PNT).
“I see this as a win for both firms, with Eli Lilly likely benefiting the most in the long run,” Jones concluded, citing the deal’s potential to align with the company’s aspirations in oncology.