Why Eli Lilly Is This Analyst's 'New Top Large Cap Pick'

Tirzepatide has been de-risked and Eli Lilly And Co’s LLY Mounjaro could be the “biggest drug ever,” according to UBS.

The Eli Lilly Analyst: Colin Bristow upgraded Eli Lilly from Neutral to Buy while raising the price target from $335 to $363.

The Eli Lilly Takeaways: Mounjaro’s SURMOUNT-1 readout presented a best-in-class dataset with more than 20% weight loss and “several underappreciated metrics” that could drive peak sales to an estimated $25 billion, Bristow said in the upgrade note.

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“We expect continued launch execution and, critically, FDA permitting filing in the obesity indication based solely on SURMOUNT-1, to serve as upside drivers of estimate,” the analyst said. 

While donanemab is risky, it is “the highest potential late-stage Alzheimer's asset, in our view, with LLY also being the best risk-reward play into BIIB's upcoming lecanemab read,” he added.

Lilly is the "new top large cap pick" at UBS, Bristow said. 

LLY Price Action: Shares of Eli Lilly were trading 3.59% higher at $307.11 Thursday morning. 

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