Eli Lilly core thesis ‘remains intact’ despite Q3 miss, says JPMorgan

After Eli Lilly (LLY) reported Q3 results that are below the Street view on sales and EPS due to Zepbound and Mounjaro wholesaler destocking and narrowed its top-line guidance to $45.4B-$46.0B while maintaining its EPS guidance ex-IPRD of $16.10-$16.60, JPMorgan assumes shares will be off on today’s results. However, Lilly “remains one of our favorite names in the group” and the firm sees further upside to Street estimates as injectable capacity ramps, orforglipron comes to market and outcomes data support broad use of obesity medications, says the analyst, who maintains an Overweight rating on shares and will look for more color during the call.