Market Overview

BofA On Eli Lilly: Disappointing Q3 Comes In Otherwise Strong 2020

BofA On Eli Lilly: Disappointing Q3 Comes In Otherwise Strong 2020

Eli Lilly And Co’s (NYSE: LLY) third-quarter results show the persisting impact of COVID-19 and pricing headwinds, according to BofA Securities.

The Eli Lilly Analyst: Geoff Meacham maintained a Buy rating on Eli Lilly with a $180 price target. 

The Eli Lilly Thesis: The downbeat third-quarter results could exert pressure on the company’s stock, Meacham said in the note.

Eli Lilly missed both top- and bottom-line estimates for the quarter.

In the third quarter, the company “saw an impact from pricing pressures (+5% sales growth, +9% volume growth) particularly with Trulicity and increased expenses (+9% y/y), which was driven by COVID-19 development expenses ($125M),” the analyst said.

Lilly's year-to-date growth “still remains strong / differentiated which is a key part of the story, with revenues growing +6% (driven primarily by volume growth),” he said. 

Lilly maintained the 2020 guidance for revenue and non-GAAP earnings, “assuming a rebound in healthcare activity and modest pricing headwinds from patient affordability programs and changes in segment mix,” Meacham said. 

LLY Price Action: Shares of Eli Lilly were down 6.14% at $133 at last check Tuesday.

Latest Ratings for LLY

Dec 2020Wolfe ResearchUpgradesPeer PerformOutperform
Nov 2020MizuhoMaintainsNeutral
Nov 2020BernsteinInitiates Coverage OnMarket Perform

View More Analyst Ratings for LLY
View the Latest Analyst Ratings


Related Articles (LLY)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings News Health Care Price Target Reiteration Analyst Ratings Movers

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
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.
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