4 big analyst picks: Eli Lilly a buy after obesity drug results, says Jefferies
Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Eli Lilly, DraftKings, United States Cellular, and Dish Network.
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Jefferies upgraded Eli Lilly (NYSE:LLY) to Buy from Hold and raised its price target to $615.00 from $430.00, as reported in real time on InvestingPro.
Jefferies said it is optimistic about the company's diabetes and weight loss drugs Mounjaro and orforglipron, citing «outstanding» data out of Novo Nordisk (NYSE:NVO) trial of its own obesity-related drug, as well as better-than-expected Q2 results from Mounjaro.
The analysts wrote,
We think NVO opens the door to broader payer adoption & potential CMS [Medicare/Medicaid] coverage for the GLP-1 class. Thus, we’re meaningfully boosting our Mounjaro peak sales est to $70B & orforglipron to $8.5B.
The analysts said they also see upside to Eli Lilly's top and bottom lines.
The stock was stepping back fractionally to $519.43 shortly after the opening bell following Tuesday's nearly 15% on a better-than-expected Q2 and boosted full-year guidance.
Two Wall Street firms upgraded DraftKings (NASDAQ:DKNG) following better-than-expected Q2 results last week.
JPMorgan upgraded the company to Neutral from Underweight with a price target of $26.00.
Meanwhile, Truist Securities upgraded to Buy from Hold with a price target of $44.00, highlighting DraftKings’ compelling growth trajectory and increasing share gains.
Earlier this week, Wells Fargo upgraded the company, noting that EBITDA estimates will continue to move higher.
Despite the upgrades, shares fell more than 4% premarket today after rival PENN Entertainment (NASDAQ:PENN)
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