Eli Lilly and Co. LLY could witness a 140% surge in its shares, as predicted by Goldman Sachs. The growth is anticipated to be driven by an increased demand for GLP-1 weight loss and diabetes drugs.
What Happened: Goldman Sachs’ latest research suggests a bright future for Eli Lilly, as reported by Business Insider on Tuesday. The bank predicts that by 2028, GLP-1 drugs, including Eli Lilly’s Mounjaro and Zepbound, will be consumed by nearly 68 million Americans.
The banking giant believes that the potential of GLP-1 drugs has been underestimated, which could potentially skyrocket their revenues to an astonishing $400 billion. This is four times higher than Wall Street’s current estimates. Goldman Sachs likens the potential of these drugs to the transformative effects of Apple’s iPhone and Amazon’s e-commerce business.
Goldman Sachs also advised investors to keep an eye on key GLP-1 studies, namely SYNCHRONIZA-CVOT, REDEFINE-3, and SURMOUNT-MMO. These studies are expected to increase the demand for GLP-1 drugs by 9 million people.
Despite the bullish outlook, Goldman Sachs maintains a “Neutral” rating for Eli Lilly and sets a $600 price target, indicating a potential 5% upside from its current levels.
Why It Matters: Earlier this year, Eli Lilly’s stock witnessed a significant rise as the company capitalized on the growing trend of obesity drugs. The company’s GLP-1 drug, Mounjaro, which is presently indicated for treating Type 2 diabetes, has been attracting more investors. This is due to its upside potential, GLP-1, or glucagon-like peptide-1 agonists, are a type of drug used for treating Type 2 diabetes and obesity. The increasing demand for these drugs could contribute significantly to Eli Lilly’s growth.
Read Next: Why is Prostate Cancer Focused Lantheus (LNTH) Stock Trading Lower Today?
Image by Mohammed_Al_Ali via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
