Eli Lilly selloff brings ‘compelling’ entry point, says JPMorgan

JPMorgan views the post-earnings selloff in shares of Eli Lilly (LLY) as providing a “compelling” entry point. The Q2 report came in well ahead of consensus estimated and Lilly is raised guidance, which should dispel some weight loss market concerns, the analyst tells investors in a research note. However, the firm says the bigger focus was on orforglipron’s Phase 3 obesity data where weight loss came in slightly below expectations. JPMorgan does not see 1-2 percentage points lower weight loss as meaningfully changing the use case for orforglipron. It keeps an Overweight rating on Lilly shares with a $1,100 price target