Eli Lilly shares rise, named 'top pick' at Morgan Stanley

Eli Lilly (LLY) has been made a "top pick" by Morgan Stanley, arguing it has the "strongest growth profile" within its coverage universe. The company recently reported strong second quarter earnings, causing shares of the company to jump.

Market Domination anchors Josh Lipton and Madison Mills break down the note Eli Lilly and what it means for the company moving forward.

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This post was written by Nicholas Jacobino

Video transcript

Morgan Stanley naming Eli Lilly a top pick in a note today.

The note saying that the drug maker has the quote strongest growth pile with growth profile within its coverage universe.

And this was really interesting this top pick because they're talking about a couple of things here when it comes to Eli Lilly's performance, right?

One of them is this idea that Eli Lilly has been talking about and spoke about on the call, the idea that their shortages of the drugs, the weight loss drugs that they're offering are gonna start alleviating soon.

That is a potential up catalyst for the stock moving forward.

They also said that they believe that Lily offers the most attractive opportunity in coverage for upside to consensus estimates despite the stocks out performance.

So they continue to see that upside movement moving forward here.

And also just that the the drug maker has kind of come from behind here, Nova Nordic was the first to get to market with a weight loss drug back in 2021.

And then Eli Lilly came onto the scene with their own competing drug.

And to me, it's kind of an interesting story about how you don't necessarily have to be first to win that becoming even more clear with this Morgan Stanley test.

Yeah, Morgan, so Eli has the most robust new product cycle and hence growth outlook in Pharma says the company could launch five new drugs over the next two years.

Reiterate the overweight, they take their target up to 1106.

Now this the stock is in Georgia.

Uh obviously a very strong one some more than 50% already this year.

But clearly Morgan Salley says, you know, what, better times ahead.