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Morgan Stanley Sees Slower Ramp-Up for GLP-1 Drugs, But Still a Top Pick
Morgan Stanley analyst Terence Flynn has reduced his fourth-quarter sales estimates for Eli Lilly’s obesity drug Zepbound, but remains a fan of the company, with a $1,146 price target that implies a nearly 50% increase from the current share price.
Flynn cited improved supply, marketing spending, reduced impact from compounding pharmacies, and improved insurance coverage as key factors that will drive growth in the GLP-1 class and the company’s products.
The analyst is also standing firm on his 2025 projections, with revenue estimates 14% above consensus and earnings estimates 26% above the street.
Mid-Cap Stocks Outperform, Value Stocks Shine
Mid-cap stocks outperformed on Tuesday, with the Vanguard Mid-Cap ETF (VO) slightly down 0.1%, while the S&P 500 fell 0.8%. Mid-cap value stocks, represented by the Vanguard Mid-Cap Value ETF (VOE), gained 0.6%.
ISM Services PMI Beats Expectations, Yields Rise
The U.S. services sector grew at a faster-than-expected pace in December, with the ISM services sector PMI coming in at 54.1, above the expected 53.4. The PMI’s price index soared 6.2 points to 64.4, indicating potential inflation on the horizon.
Major U.S. Indexes Open Higher
Stocks kicked off the trading session in the green, with the S&P 500 and Nasdaq Composite on track to notch a three-day winning streak. The Dow Jones Industrial Average opened higher by about 179 points, or 0.4%, while the S&P 500 added roughly 0.4%, and the tech-heavy Nasdaq jumped 0.3%.
QQQ: A Last Stand for Bears
BTIG strategist Jonathan Krinsky sees a key technical area for the Invesco QQQ Trust (QQQ), which is re-testing its broken trendline from the August lows. If bears are to make a stand, it would likely be in this area.
Getty Images and Shutterstock Announce Merger
Getty Images Holdings and Shutterstock Inc. have announced a merger, which will create a combined company with an enterprise value of $3.7 billion. Shares of both companies soared in premarket trading.
UBS Upgrades Bank of America, Calls it an “Overlooked” 2025 Winner
UBS analyst Erika Najarian has upgraded Bank of America to a buy rating from neutral, citing its attractive valuation and potential to unlock net interest income outperformance.
Japan Stocks Lead Gains in Asia-Pacific Markets
Japan’s Nikkei 225 led gains in the Asia-Pacific region, rising 1.97% on the back of a tech rally. Most other markets also rose, with the exception of Hong Kong’s Hang Seng Index, which was dragged down by tech and health-care stocks.
Tesla’s Influence on the Stock Market Grows
S3 Partners says that Tesla’s recent increase in short interest and volatility has made it a key player in the market, surpassing both Nvidia and Apple in terms of its impact on stock prices.
Stocks Moving in Extended Trading Hours
Inari Medical surged 22% after reports of a potential acquisition by Stryker, while Ulta added nearly 2% after increasing its fourth-quarter outlook and announcing the retirement of its CEO.