Eli Lilly and Company (NYSE:LLY) is a stock I covered over a year ago, initially pretty skeptical of the potential of its weight loss drug Zepbound and the overall GLP-1 opportunity in general. I have since reconsidered the value of
Eli Lilly: Still Too Pricey To Buy
Summary
- Eli Lilly's weight loss drugs, especially Zepbound and Mounjaro, have driven impressive revenue growth, but the stock's valuation remains stretched.
- While I underestimated the GLP-1 opportunity, I see limited upside for LLY at current prices.
- Lilly's broad pipeline and investments suggest long-term growth, but high capital outflows and competition could pressure future margins and cash flow.
- Despite strong execution, the current $700B valuation prices in ideal outcomes, so I maintain a Hold rating due to limited risk/reward.
I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles as those are considered short theses, and I never recommend shorting.Former advisory representative at Fidelity. I do my own investing now and share my research here.
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