A Presidential Boost for GLP-1s?

Eli Lilly’s stock, recently hit by postelection volatility, could see a remarkable turnaround, driven in part by high-profile endorsements. Bernstein analysts point to positive signals that suggest the pharmaceutical giant could thrive under the new U.S. administration.

The Backdrop:
The company’s stock slid over 6% following President-elect Donald Trump’s announcement of Robert F. Kennedy Jr., a vaccine skeptic, as his pick for Health and Human Services. But Bernstein analyst Courtney Breen argues the selloff was overdone, especially for Eli Lilly, a leader in GLP-1 weight-loss drugs like Mounjaro and Zepbound.

Two Key Catalysts:

A Strategic Dinner: Eli Lilly CEO David Ricks recently attended a dinner with Trump and Kennedy, alongside other industry leaders. Breen sees this as a signal for potential collaboration on health initiatives.

Elon Musk’s Endorsement: Musk, tasked with a government efficiency initiative by Trump, tweeted his support for making GLP-1 drugs “super low cost,” emphasizing their unparalleled potential to enhance public health.

Why Eli Lilly Stands Out:
Breen highlights the company’s U.S. base and scalability as advantages over competitors like Novo Nordisk. With a 38.2% upside potential and an outperform rating, Eli Lilly is well-positioned for growth.

Despite challenges, Eli Lilly shares are up 35% this year, marking eight consecutive years of gains. Could Musk’s influence and the administration’s focus on health initiatives drive the next surge?

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