CNBC host and former hedge fund manager Jim Cramer is urging investors to “start a position” in Eli Lilly (LLY) stock, saying the recent pullback presents a buying opportunity.
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On his program called “Mad Money,” Cramer said, “Okay, Eli Lilly. We bought some just the other day for the Charitable Trust. Why did we do that? Because it’s down very big and yet it’s been beating Novo Nordisk over and over and over again. So I just think this is a decent level to start a position if you don’t have any.”
Cramer’s program caters to retail investors and recommends stocks for individuals to buy. Over the years, the show host has been bullish on the new class of weight loss drugs and Eli Lilly in particular, singling out the company as a best-in-class U.S. pharmaceutical concern.
‘Hand Over Fist’
Earlier in May, Cramer said he would “buy Eli Lilly hand over fist” after a study showed that the company’s Zepbound weight loss drug outperformed rival Novo Nordisk’s Wegovy obesity medication. Cramer stressed that the future sales potential of Zepbound is not reflected in LLY stock.
“I want you to buy more… The reason why you want to buy it is because there was definitive data that came out last night about Novo Nordisk not being anywhere near as good as Eli Lilly when it comes to weight loss… I think the stock could be up a hundred points when people realize, wait a second, it is definitively better than Novo.”
Jim Cramer is pounding the table on LLY stock as the share price has declined 22% in the last three months amid concerns about tariffs and efforts in Washington, D.C. to lower U.S. drug prices.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy recommendation among 18 Wall Street analysts. That rating is based on 16 Buy, one Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $988.77 implies 37.81% upside from current levels.
