Bank of America Raises Estimates On Eli Lilly, Following Consumer Analysis trendswire

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Bank of America reiterated a Buy rating on Eli Lilly & Co. (NYSE:) and raised its 12-month price target on the stock to $500.00 (from $450.00) following exclusive consumer analysis conducted to examine growing hype. surrounding new obesity drugs.

Bank of America analyzed more than 1,100 responses from US consumers to assess current demand for weight loss treatments, adoption, and treatment limitations to gain a directional sense of interest.

Analysts also examined the ever-changing world of social media trends, focusing specifically on the weight management scene. Their goal was to understand what potential customers were talking about and how prices affected their choices.

The study found that more than 55% heard about these therapies on some form of social media, suggesting a need for targeted advertising. Lilly launched the first direct-to-consumer campaign for Mounjaro in T2D in the first quarter, and Bank of America expects increased interest in Mounjaro as patients become more familiar with the benefits.

BofA analysts wrote in a note: “In our analysis, it appears that consumers are more interested in Trulicity de Lilly / Ozempic de Novo (covered by Jain / Parry) for weight loss, which we would mainly attribute to the new nature from Mounjaro/Wegovy. But ultimately, we don’t expect obesity to be a zero-sum game; in fact, we suspect that with several big players (eg, Lilly, Novo, Pfizer, and others) we will likely see faster improvements in reimbursement and competitive pricing pressure, which should lead to faster uptake.”

Bank of America increased revenue forecasts for Mounjaro in type 2 diabetes by an average of 19% for ’23-’30. They also increased the predictions for tirzepatide in obesity by an average of 40% for ’23-’30.

LLY shares rose 0.51% in midday trading on Wednesday.