Bernstein Sees Eli Lilly (LLY) 'In a Strong Position to Work Creatively With the New Administration'

Bernstein SocGen Group analyst Courtney Breen reiterated an Outperform rating and $1,100.00 price target on Eli Lilly (NYSE: LLY).

The analyst said: "We saw more negative stock reaction for the vaccines exposed companies (which we think was somewhat justified), but also saw a more negative stock reaction for Eli Lilly, due to GLP1 exposure - which we think is less justified. Important to note, we’ve seen a remediation of this step-down for Lilly, albeit we attribute this largely to other catalysts (Tirzepatide vs Semaglutide H2H, MariTide data).

We are using this note to highlight that in the past week we’ve seen two more positive signals for Lilly and GLP1 market on this front - 1) Dave Ricks attendance at a dinner with President-elect Trump & RFK Jr in Mar-A-Lago along with Albert Bourla (PFE) and Stephen Ubl (PhRMA), an opportunity to collaborate directly with the new administration; and 2) Elon’s post on X today that stated “Nothing would do more to improve the health, lifespan and quality of life for Americans than making GLP inhibitors [sic] super low cost to the public,”

Our take: With Elon’s role in the new administration plus Lilly’s ability to bring creative solutions to the table for GLP1s (the new images, Lilly Direct, collaboration with Ro (not covered)) - we see Lilly in a strong position to work creatively with the new administration to expand access to GLP1s (albeit recognizing there is always a trade-off between access & price). It is possible that Lilly is in a stronger position that Novo (covered by Cespedes) to navigate this tight-rope, being US headquartered and having demonstrated a faster path to scaling volume to-date."

For an analyst ratings summary and ratings history on Eli Lilly click here. For more ratings news on Eli Lilly click here.

Shares of Eli Lilly closed at $796.03 yesterday.

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