Eli Lilly dips after HSBC's double downgrade

Rogers

28/04/2025 15:34

Updates

** Eli Lilly LLY.N shares dip 1.5% to $871.60 after HSBC double downgrades rating on drugmaer's shares to "reduce" from "buy"

** Rival Novo Nordisk NOVOb.CO launches weight-loss drug Wegovy in Thailand ahead of Lilly's Zepbound

** Brokerage also cuts PT on Lilly's shares to $700 from $1150, saying there is "too much optimism in the price"

** HSBC says obesity drug sector is sensitive to macro environment and sector's growth risk due to higher unemployment numbers is unknown

** "We prefer Novo (Nordisk) over Lilly at the current share price", HSBC adds

** Brokerage also downgrades Roche ROG.S, Biogen BIIB.O to "hold" from "buy," citing forex and China diagnostics risks for Roche and slow Alzheimer's adoption for Biogen

** 23 of 29 analysts rate Lilly shares "buy" or higher, 5 "hold" and 1 "sell", median PT $1,000 - LSEG

** YTD, as of last close Lilly shares up 14.6%, ROG up 3.6% and BIO down 22.3%

(Reporting by Twesha Dikshit)

((Twesha.Dikshit@thomsonreuters.com))