Wells Fargo analysts raised the company’s price target on Eli Lilly & Co. (NYSE:) to $500 from $440, maintaining an overweight rating on the stock in a Friday note.
Analysts said the company “would own LLT” in competitor Novo’s SELECT trial in mid-23.
“We believe a successful trial could send LLY up 5%, while a failure could mean down 10%,” the analysts said, adding that while LLY shares performed well over the of the last three months, they see more benefits.
Shares of Eli Lilly are up more than 16% this year, while they have gained almost 40% in the past 12 months, currently trading around $426.50.
Wells Fargo said its analysis indicates likely success in the SELECT trial based on the multiple benefits of the GLP-1 mechanism.