HSBC Lifts Eli Lilly to Hold, Citing Strong Obesity Drug Outlook

HSBC upgraded Eli Lilly & Co. to Hold from Reduce and lifted its 12-month price target to $700, saying the pharmaceutical group now has a clear commercial path for its oral obesity therapy Orforglipron as long as the fast-growing market maintains price discipline. Analyst Rajesh Kumar wrote that the firm’s earlier bear case has largely played out. The call follows fresh data showing Lilly’s breast-cancer drug Verzenio improved patient outcomes, and comes after a sharp share-price rally that left the stock 5% above the new target at Tuesday’s close of $736.03. Lilly rose a further 0.9% in U.S. pre-market trading on Wednesday. FactSet data show the average analyst price target on Lilly is $913, and following HSBC’s move no firm now carries the equivalent of a sell rating. Truist Financial and Citigroup reiterated buy recommendations this week, while recent insider purchases have added to positive sentiment around the Indianapolis-based drugmaker.