Eli Lilly's stock drops 3.08% to $765.51 on July 17, down 21.29% from 52-week high.

Eli Lilly and Co (LLY) shares fell 3.08% to $765.51 on Jul 17, down 21.29% from its 52-week high. Analysts forecast an average target price of $968.01, implying a 26.45% upside from the current price. Based on historical data and analyst projections, the estimated GF Value is $1218.37, suggesting a 59.16% upside.

Eli Lilly and Co (LLY) shares fell 3.08% to $765.51 on July 17, marking a significant decline from its 52-week high of $972.53. The stock reached an intraday low of $765.10 before recovering slightly, placing it 21.29% below its peak and 13.06% above its 52-week low of $677.09. Trading volume was 1,716,926 shares, representing 53.0% of the average daily volume of 3,236,440 [1].

Analysts are forecasting an average target price of $968.01 for LLY, suggesting a 26.45% upside from the current price of $765.51. This average target is derived from the one-year price targets offered by 26 analysts, with a high estimate of $1,190.00 and a low estimate of $675.00. The consensus recommendation from 29 brokerage firms is currently "Outperform," with an average brokerage recommendation rating of 2.0 [1].

Based on GuruFocus estimates, the estimated GF Value for LLY in one year is $1218.37, implying a potential 59.16% upside from the current price. GF Value is calculated using historical multiples, past business growth, and future performance estimates [1].

The recent market performance of LLY is influenced by various factors, including the delayed reimbursement of its breast cancer drug Verzenio in Korea. Despite global approvals and clinical data demonstrating its effectiveness, Verzenio remains unreimbursed for high-risk early breast cancer in Korea. This has led to concerns among oncologists and patients, who argue that early intervention could prevent relapses and reduce long-term healthcare costs [2].

Additionally, LLY's weight loss drug Zepbound underperformed in the third quarter, raising concerns about the outlook for the weight loss drug market. However, Novo Nordisk's Wegovy has reassured investors with its strong sales performance. LLY attributed the sales shortfall of Zepbound to wholesalers cutting back on inventory, which may be influenced by financial pressures and cold chain capacity limitations [3].

In summary, LLY shares have experienced a significant drop, but analysts remain optimistic with their forecasts. The company's performance is affected by market concerns and regulatory issues, particularly in Korea. Investors should closely monitor LLY's future earnings and regulatory developments to assess the stock's potential.

References:
[1] https://www.gurufocus.com/news/2985399/eli-lilly-and-co-lly-shares-gap-down-to-76551-on-jul-17
[2] https://www.koreabiomed.com/news/articleView.html?idxno=28259
[3] https://www.moomoo.com/news/post/87420085/record-tr4cking-news-default