CA - Eli Lilly: Bloated Stock

2024-05-01 11:00:12 ET

Summary

• Eli Lilly and Company missed sales targets by $160 million in Q1 despite strong growth in diabetes and weight loss drugs.
• The drug company provided strong guidance for 2024 due to higher drug production capacity in the 2H.
• Eli Lilly stock is already trading at high multiples and has priced in years of future sales gains, limiting its overall growth potential.

Eli Lilly and Company ( LLY ) has seen one of the biggest rallies over the last couple of years due to excitement surrounding the growth potential for weight loss drugs. The biopharma is now generating solid growth with the ramp up of GLI-1s in full force. My investment thesis remains Neutral on the stock as the rally continues to price in future sales gains for years into the future....

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