If middle-class Americans lose their jobs to AI, that could mean fewer cash sales of weight-loss drugs like Zepbound. ...

Analyst Rajesh Kumar downgraded the U.S. drugmaker from Hold to Reduce, while cutting the price forecast from $1070 to $850.According to Bloomberg, the downgrade (the stock’s lowest on Wall Street) comes after a bit of back and forth.HSBC downgraded Eli Lilly’s stock to a sell-equivalent last April, citing excessive optimism and unattractive risk-reward. Four months later, they upgraded it to hold, noting potential upside if the obesity market maintains price discipline. However, they have now reassessed, s ...

Eli Lilly (NYSE:LLY) stock is down 5% in Tuesday afternoon trading, with shares falling to $937 from a prior close of $989.12. ...

Eli Lilly ( NYSE:LLY ) shares have pulled back sharply, falling 9% over the past month, and 13% year-to- date. ...

Group 1: Netflix - Netflix has been a core holding and recently saw a price dip, which presents a buying opportunity around the $75 range [2][3] - The company is expected to walk away from a merger deal with Warner Brothers, which is viewed as a positive move that will enhance its competitive position in Hollywood [4] - The stock is anticipated to recover to around $125 as Netflix continues to dominate the market [4] Group 2: Eli Lilly - Eli Lilly is highly regarded for its GLP-1 drugs, with an upcoming approval for a new pill that is expected to be more effective than competitors [5][6] - The company is positioned to dominate the weight loss drug market, especially with the introduction of GLP-3 next year [7][8] - Eli Lilly is seen as having superior management and products compared to its main competitor, Novo Nordisk [8] Group 3: Micron and Nvidia - Micron shares have increased over 40% in 2026, but there is a belief that the stock is still undervalued due to market doubts about AI growth [9][10] - Micron's earnings are projected to rise significantly, with estimates suggesting earnings could reach over $30 per share, indicating a strong upside potential [10][11] - Nvidia is also viewed as undervalued, trading at a low multiple compared to its historical average, presenting a significant investment opportunity [12][13] Group 4: Tesla - Tesla is currently facing challenges, with a noted lack of focus on its EV business and a shift towards battery storage as its standout segment [15][16] - The company's future reliance on autonomous vehicle technology is questioned, with concerns about its economic viability [17][18] - The stock is perceived to be overvalued, with a suggested fair value around $200, indicating a tough investment outlook [18]

Core Viewpoint - Eli Lilly's stock has faced pressure following a downgrade by HSBC, raising questions about the sustainability of its strong performance in the obesity drug market and whether investors should reassess valuations [1][3]. Stock Performance - The stock declined by 4.2% after the downgrade, although it remains one of the best-performing large-cap healthcare stocks over the past year, with a 14% increase in shares over the last 12 months, significantly outperforming Novo Nordisk, which has seen a decline of over 54% in the same period [2]. Valuation Concerns - HSBC analyst Rajesh Kumar downgraded Eli Lilly from "Hold" to "Reduce" and lowered the price target from $1,070 to $850, citing concerns that the stock may be overvalued relative to its fundamentals [3]. - The analyst noted that the stock is currently "priced to perfection," indicating that much of the optimism regarding Lilly's growth prospects is already reflected in its stock price [4]. Obesity Drug Market Outlook - HSBC revised its outlook for the total addressable market (TAM) for obesity drugs, projecting it to be between $80 billion and $120 billion by 2032, which is significantly lower than the consensus expectation of exceeding $150 billion [5]. - The downgrade reflects concerns about increasing pricing pressures and competition, particularly from Novo Nordisk, which produces Wegovy [6]. Competitive Dynamics - Analysts have warned that rising working capital intensity, pricing pressures, and rebate dynamics at both Eli Lilly and Novo Nordisk suggest that pricing dynamics may worsen [7]. - The divergence in market outlook between Lilly and Novo Nordisk has raised investor concerns, with Lilly's success in the cash-pay channel attributed more to pricing than product differentiation [8]. Pipeline Risks - While Eli Lilly is expanding its obesity drug portfolio, there are potential risks associated with upcoming products, such as the orforglipron pill, with expectations that compliance and persistence may disappoint [9]. - Current market estimates for 2026 revenue from the drug range from $1.1 billion to $1.3 billion, which are viewed as optimistic, especially given Lilly's $1.5 billion pre-launch inventory [10]. Analyst Sentiment - Despite HSBC's cautious stance, healthcare remains an attractive sector overall, described as relatively defensive amid macroeconomic uncertainty [11]. - The consensus among analysts remains positive for Eli Lilly, with 16 out of 19 analysts giving a buy rating, 2 a hold rating, and 1 a sell rating, indicating that the recent pullback may represent a buying opportunity [12].

Core Viewpoint - Eli Lilly's stock has experienced a decline following a downgrade by HSBC, which cited an "inflated market" for obesity drugs and deemed the stock appropriately priced [1] Group 1: Stock Performance - Eli Lilly's stock is currently trading at $967.06, down 2.2% after the downgrade [1] - The stock has a year-to-date deficit of 9.8%, but has gained over 17% in the last 12 months [3] - The 12-month consensus target price for Eli Lilly is $1,201.43, representing a 21.5% premium to current levels [2] Group 2: Analyst Ratings - A majority of analysts remain bullish on Eli Lilly, with 26 out of 30 firms rating it "buy" or better [2] - The recent downgrade by HSBC is notable given the overall positive sentiment from other analysts [1][2] Group 3: Options Market Sentiment - Options traders are leaning bearish, as indicated by a 10-day put/call volume ratio of 1.16, which is higher than 98% of annual readings [4] - The Schaeffer's put/call open interest ratio (SOIR) of 1.60 also ranks higher than all other readings from the past year, suggesting bearish sentiment [4] Group 4: Volatility Expectations - Options for Eli Lilly are currently considered affordable, with a Schaeffer's Volatility Index (SVI) of 37%, which ranks higher than 25% of all other readings from the past year [5] - This indicates that near-term option traders are pricing in relatively low volatility expectations [5]

Eli Lilly & Co. shares dip after HSBC turned bearish on the stock, for the second time in a year, saying investor expectations for weight-loss drugs are over inflated. https://t.co/wDBYf58raE ...

Core Viewpoint - Eli Lilly, the manufacturer of Zepbound and Mounjaro, is expected to encounter significant price competition in the upcoming year according to HSBC [1] Company Summary - Eli Lilly is facing challenges in maintaining pricing power for its products Zepbound and Mounjaro due to anticipated competitive pressures [1]

have it. Joining me right now, Diane King Hall sitting next to me taking a look at some more names in the news and that includes Delta Airlines. Good morning, Diane. >> Morning.Good to be with you. Speaking of Green Arrows, we've got Green Arrows for Delta Airlines after an update to their guidance today. They were speaking at a JP Morgan Chase conference.uh and several of the airliners were giving some of the outlook and some much needed relief for the airliners after all the turbulence recently following ...