Skip to main content

Market Overview

Eli Lilly's 2016 Guidance Released Next Week Could Disappoint, Leerink Warns

Share:
  • Eli Lilly and Co (NYSE: LLY) shares have appreciated 24.44 percent year-to-date, from trading close to the 52-week low on December 31, 2014, at $68.99.
  • Leerink’s Seamus Fernandez has maintained an Outperform rating on the company, while raising the price target from $93 to $95.
  • Fernandez expects the company’s 2016 EPS guidance, scheduled to be announced on January 5, to be disappointing, given that the consensus forecasts do not seem to have factored in the absence of the 2015 FX benefit.

Analyst Seamus Fernandez mentioned, however, that there was a “wide range of attractive upside scenarios for investors with an obvious focus on LLY's Alzheimer's pipeline, but pipeline upside opportunities more broadly include agents in oncology and neurology/CNS.”

There is also likely to be opportunity for significant operating leverage post-2016, with the diabetes franchise accelerating and the oncology franchise broadening.

In addition, the outcome of the EXPEDITION 3 study on solanezumab in mild Alzheimer's would become available by the end of 2016, which is expected to offer 10-20 percent upside to the stock.

Key revenue drivers for Eli Lilly during 2017-2026 are expected to be its products, solanezumab for Alzheimer's disease, abemaciclib for solid tumor, Trulicity for diabetes and baricitinib in RA.

Risk-adjusted sales for these four assets are estimated at $7 billion worldwide by 2026, “with significant upside potential from solanezumab and/or abemaciclib.”

Latest Ratings for LLY

DateFirmActionFromTo
Mar 2021Truist SecuritiesMaintainsBuy
Feb 2021Cowen & Co.MaintainsOutperform
Feb 2021Morgan StanleyMaintainsOverweight

View More Analyst Ratings for LLY
View the Latest Analyst Ratings

 

Related Articles (LLY)

View Comments and Join the Discussion!

Posted-In: Leerink Seamus FernandezAnalyst Color Long Ideas Price Target Analyst Ratings Trading Ideas

Latest Ratings

StockFirmActionPT
GDWolfe ResearchDowngrades
QRTEAB of A SecuritiesInitiates Coverage On
ABB of A SecuritiesDowngrades42.0
VCTRB of A SecuritiesUpgrades32.0
BSIGB of A SecuritiesUpgrades27.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com