Wells Fargo Raises Eli Lilly & Co. Price Target
Wells Fargo's analytical team has uplifted the price target for Eli Lilly & Co. (NYSE: LLY) from $440 to $500. In a recent note on Friday, the firm held its Overweight rating on the stock, demonstrating strong confidence in its performance.
LLY Shares' Performance: A Positive Outlook
Wells Fargo analysts have remarked that despite Eli Lilly shares having performed exceptionally well in the past three months, there is still room for growth. The pharma company's shares have already seen a robust uptick of 16% this year and have surged nearly 40% over the last 12 months. At present, the shares are being traded around the $426.50 mark.
Eli Lilly vs. Novo: The SELECT Trial
The Wells Fargo team also addressed Eli Lilly's position about competitor Novo's SELECT trial due in mid-2023. If the trial is successful, it could potentially boost LLY's stock value by 5%, while a failure could result in a 10% downside. However, they maintain the stance, "We would be owners of LLY" in this trial.
Expectations from the SELECT Trial: Promising GLP-1 Mechanism
Furthermore, the analysts from Wells Fargo predict that the SELECT trial will likely be successful. They base this outlook on the multiple benefits that the GLP-1 mechanism offers, further strengthening their confidence in Eli Lilly's prospective growth.