Eli Lilly Stock Target Raised to $1,133 by Morgan Stanley Ahead of Key Trial Data

Eli Lilly and Company (LLY.US) has received a "buy" rating from Morgan Stanley, with a target price set at $1,133. The firm's optimism is centered around the anticipated release of Phase III data from the SURPASS-CVOT trial, scheduled for the third quarter of 2025. This data is expected to serve as a significant catalyst for the company's stock price, as it will provide crucial insights into the efficacy and safety of Eli Lilly's treatments.

The SURPASS-CVOT trial is designed to compare the effectiveness of Eli Lilly's Mounjaro (tirzepatide) with Trulicity (dulaglutide) in patients with type 2 diabetes (T2D). The market widely anticipates that both drugs will meet non-inferiority criteria, but the potential for superior efficacy results could drive the stock price higher. The uncertainty surrounding the pricing dynamics of GLP-1 class drugs has heightened investor interest in this trial, as positive outcomes could validate Eli Lilly's position in the market and bolster investor confidence.

During a recent virtual conference hosted by Morgan Stanley, a panel of medical experts discussed the potential outcomes of the SURPASS-CVOT trial. The experts suggested that Mounjaro could demonstrate superior cardiovascular benefits compared to Trulicity, with a risk reduction of at least 10%. The additional weight loss effects of Mounjaro are expected to be a key driver of its relative advantages. This positive outlook from medical experts further supports the bullish stance on Eli Lilly's stock, as the trial results could confirm the company's leadership in developing innovative therapies for diabetes management.