Eli Lilly and Company (NYSE:LLY) is included among the 14 Best GARP Stocks to Buy According to Analysts.

On February 25, RBC Capital initiated coverage on Eli Lilly and Company (NYSE:LLY) with an Outperform rating and a price target of $1,250. The company said Lilly’s obesity franchise is positioned to dominate the market through 2030. The analyst noted that investor sentiment remains broadly positive. At the same time, “there’s a bit of jitters about high expectations” as the company approaches a $1 trillion market value. RBC added that current consensus estimates “materially understate” Lilly’s future growth potential, especially given what it described as “transformational catalysts on the horizon.”

A recent Reuters report said Lilly’s experimental weight-loss pill, orforglipron, showed stronger efficacy but also more side effects compared with Novo Nordisk’s oral semaglutide, Rybelsus, in a head-to-head diabetes trial. About 58% of patients taking the 36 mg dose of orforglipron reported mild to moderate side effects. This compares with 45% of patients taking the 14mg dose of Rybelsus. About 10% of patients taking orforglipron stopped treatment because of side effects, compared with 5% on Rybelsus. The drug was also associated with an increase in pulse rate.

Despite this, orforglipron gave stronger results in blood sugar control and weight reduction. It lowered blood sugar levels by 2.2%, compared to 1.4% for Rybelsus. Patients taking orforglipron lost an average of 8.9 kg, while those taking Rybelsus lost about 5 kg. Both treatments work by mimicking the hormone GLP-1, which helps regulate appetite and blood sugar levels. Lilly said patients can accept the higher rate of side effects because of the greater improvements in blood sugar control and weight loss.

Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company focused on discovering, developing, manufacturing and commercializing medicines for human health.

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