CA - Eli Lilly Remains Expensive Here - Minimal Margin Of Safety
2024-05-03 16:00:00 ET
Summary
- As the wider market turns pessimistic, Eli Lilly continues to trade sideways at these inflated levels with the stock still boasting overly premium valuations, triggering a minimal margin of safety.
- While LLY's capacity expansions and M&A activities will likely be top/ bottom line accretive as demand for GLP-1 remains robust, these have also caused the deterioration of its balance sheet.
- While LLY continues to demonstrate promising long-term prospects, as observed in the raised FY2024 guidance, we believe that the stock is likely to trade sideways in the near term.
- It may be more prudent to maintain our previous Hold (Neutral) rating here, with readers better off looking for other more reasonably priced stocks.
We previously covered Eli Lilly and Company ( LLY ) in February 2024, discussing its overly premium valuations and inflated prices, with the stock's exponential momentum nearing its peak optimism levels, as the market exuberance surrounding GLP-1 therapies peaked....
Eli Lilly Remains Expensive Here - Minimal Margin Of Safety