CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Following the rapid rally we saw in LLY shares since January 2 (+8.4%), we lift our target price to $702 from $665, 57.7x our 2024 EPS estimate, a premium to LLY’s historical forward P/E average, justified by the company’s strong revenue and earnings growth potential. We lower our 2023 EPS view by $0.10 to $6.60 and maintain our 2024 estimate at $12.17. We are encouraged by the positive results coming from LLY’s subsidiary Akuous Inc.’s gene therapy AK-OTOF phase 1/2 studies shared this week. The study showed hearing restoration in an 11-year old patient with severe hearing loss from birth after 30 days of the gene therapy’s administration. LLY also received approval in the U.K. yesterday for the four-dose version of its type 2 diabetes and weight management medicine, Mounjaro (Tirzepatide), which we see as positive. The company is set to announce its Q4 earnings on February 6 and we expect a solid quarter with top-line revenue growth above 25% Y/Y.