[ad_1]
Shares of Eli Lilly (LLY) fell after the release of the third quarter results before Tuesday morning's opening. The slide could present an interesting opportunity for bullish investors.
The pharmaceutical giant gives back all its gains at the beginning of the week, then in part, while the volume of morning sales increases. The publication of the results that generated an early morning stock increase is turned into a slide that reduced the 5% headline immediately after the call.
Nevertheless, the company's long-term value proposition presents opportunities, analysts say.
"The growth prospects of LLY's key medicines – Trulicity, Jardiance, Taltz and Verzenio – as well as its particularly painful pipeline assets are underestimated, in our opinion," writes Credit Suisse analyst Louise Chen. which she publishes her results.
Chen added that recent efficacy studies and the search for new drug approvals, as well as the profitable spinoffs of the Elanco animal health sciences, support an undervalued thesis of the pharmaceutical stock.
It set a price target of $ 128 per share and an overweight rating for the stock.
Not all analysts were as enthusiastic about the growth statistics of many key drugs.
Vamil Divan, an analyst at Credit Suisse, has looked at products lagging behind in explaining his mixed criticism.
"The performance of key products that are part of the new product story has been mixed," he said. "Olumiant's US $ 800K sales in the US were surprisingly light during the first full quarter in the US market, while Humalog sales were below expectations."
Olumiant, a drug for the treatment of rheumatoid arthritis, was the smallest part of the "New Drugs" revenue segment with only $ 55.6 million in global revenue, compared to Trulicity's $ 816.2 million.
Humalog, an insulin and the most profitable drug established for the company, recorded a 5% drop in global sales and 12% sales in the domestic market.
There is also concern that generic competition will further reduce these traditional cash cow offers.
Even so, Divan was not ready to sell Eli Lilly, awarding the "Neutral" rating and a $ 112 price target, still above Tuesday's price.
According to FactSet data, the feeling on the street is largely bullish.
Six of the eight analysts surveyed in the past month attributed the "Buy" rating to the drug maker, with six price targets increasing despite regulatory and efficiency constraints.
The volume charts suggest that the decline could be due to profit taking by traders after nearly 40% of the stock's performance over the last six months.
Receive an email alert whenever I write an article about Real Money. Click the "+ Follow" button next to my signature for this article.
[ad_2]Source link
