Eli Lilly: It Is A Bet On Human Longevity

(12min)

Summary

  • Eli Lilly's recent stock dip creates a compelling buying opportunity, with its valuation multiples falling to 2022 levels, despite explosive growth prospects and a deep, innovative product pipeline.
  • Driven by blockbuster drugs Mounjaro and Zepbound, Lilly's revenue surged 45% YoY. Near-term PBM headwinds are manageable, given the drugs' superior clinical data and massive market demand.
  • Beyond current successes, Lilly is innovating with a potential game-changing oral GLP-1 (orforglipron) and a visionary "one-and-done" gene therapy acquisition (Verve) targeting heart disease.
  • As a key pick in UBS's "Longevity" theme, Lilly is perfectly positioned to capitalize on the global aging trend, which fuels long-term demand for its chronic disease treatments.
  • The combination of strong fundamentals, a visionary pipeline, attractive valuation, and powerful secular tailwinds supports a "Buy" rating, with a potential 20% upside for long-term investors.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »
Eli Lilly Gateway Labs

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My Thesis

From what I see, Eli Lilly stock's (NYSE:LLY) (NEOE:LLY:CA) recent sell-off presents a compelling entry point for long-term investors as the firm's pipeline and its moves towards building a multi-generational healthcare powerhouse should take it

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This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in LLY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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