End of weight loss shortage supports Lilly comments, says Deutsche Bank

Deutsche Bank analyst James Shin keeps a Buy rating on Eli Lilly with a $1,025 price target after the FDA said its weight loss drug is no longer in shortage. The news is a positive for patients and supports Eli Lilly’s Q1 comments that shipments will see meaningful increases in the second half of 2024, the analyst tells investors in a research note. The firm says whether stocking helps bridge Q3 scripts to the Street’s Tirzepatide estimates is a key question that it is analyzing. If supply is no longer an issue, it allows the Street to view Eli Lilly and its growth more fundamentally rather than leaning on momentum, thus exposing the company to meeting growth expectations set by the Street, contends Deutsche Bank.