© Reuters. Morgan Stanley raises Eli Lilly & Co. (LLY) price target to new Street high
Morgan Stanley raised its price target for Overweight rated Eli Lilly & Co. (NYSE:) to a Street high $722 from $673 in a note Friday.
Analysts said the company’s Mounjary supply is ramping, and they were encouraged by LLY’s commentary on its 3Q call regarding
the regulatory process for Mounjaro/tirzepatide in obesity, as well as progress on the supply front.
“LLY indicated that there are no issues with the Tirzepatide obesity submission (FDA action expected by YE23) or with manufacturing, which in our view was encouraging,” the analysts said.
“In discussing the decision to provide guidance on the 4Q23 call vs. in December as originally planned, LLY noted that they wanted details on full year performance before giving next year guidance similar to the practice of peer companies. LLY declined to provide additional color as to its branding/pricing strategy in obesity,” they added.
The investment bank continues to assume obesity pricing is on par with Mounjaro in Type 2 diabetes, “hence pricing in line with Novo’s Wegovy represents a potential source of upside,” the analysts wrote.
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