Eli Lilly Stock Rises Amid Regulatory Scrutiny
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy LLY?
Source: stocktwits
- Regulatory Impact: Eli Lilly's stock rose in after-hours trading as investors shifted focus to established FDA-approved drugmakers following regulatory warnings on compounded GLP-1 products, despite a nearly 8% drop during regular trading on Thursday.
- Analyst Target Increases: Analysts have raised price targets for Lilly, with Scotiabank increasing its target from $1,165 to $1,300, implying a 27% upside, reflecting confidence in the momentum of Lilly's obesity drug franchise.
- Strong Earnings Support: Lilly reported Q4 revenue of $19.3 billion, a 43% year-over-year increase, and forecasted 2026 revenue between $80 billion and $83 billion, exceeding consensus expectations and indicating robust growth in the GLP-1 market.
- New Drug Pricing Initiative: The launch of TrumpRx.gov aims to lower drug prices by connecting consumers directly with manufacturers, offering over 40 commonly used drugs, including Ozempic and Wegovy, at $199, thereby enhancing patient access to medications.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1192 USD with a low forecast of 950.00 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1107.120
Low
950.00
Averages
1192
High
1500
Current: 1107.120
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eli Lilly Analyst Raises Price Target to $1,300
- Strong Earnings Beat: Eli Lilly reported sales of $19.292 billion and earnings of $7.54 per share, exceeding consensus estimates of $17.944 billion and $6.91 per share, indicating robust market performance and profitability.
- Sales Growth Highlights: Zepbound sales reached $4.261 billion, surpassing Street expectations of $3.880 billion, while Mounjaro sales stood at $7.409 billion, also beating the consensus of $6.820 billion, reflecting strong product demand.
- Optimistic Future Outlook: Management guided for 2026 sales of $80-$83 billion and earnings per share of $33.50-$35.00, higher than consensus estimates of $77.64 billion and $33.04, showcasing the company's growth potential.
- Prominent Growth Profile: The analyst noted that Eli Lilly has the best growth profile in their coverage universe, with projected top-line growth of approximately 20% and bottom-line growth of around 40% by 2026, establishing a clear runway for sustained growth into the next decade.
See More
Eli Lilly Stock Rises Amid Regulatory Scrutiny
- Regulatory Impact: Eli Lilly's stock rose in after-hours trading as investors shifted focus to established FDA-approved drugmakers following regulatory warnings on compounded GLP-1 products, despite a nearly 8% drop during regular trading on Thursday.
- Analyst Target Increases: Analysts have raised price targets for Lilly, with Scotiabank increasing its target from $1,165 to $1,300, implying a 27% upside, reflecting confidence in the momentum of Lilly's obesity drug franchise.
- Strong Earnings Support: Lilly reported Q4 revenue of $19.3 billion, a 43% year-over-year increase, and forecasted 2026 revenue between $80 billion and $83 billion, exceeding consensus expectations and indicating robust growth in the GLP-1 market.
- New Drug Pricing Initiative: The launch of TrumpRx.gov aims to lower drug prices by connecting consumers directly with manufacturers, offering over 40 commonly used drugs, including Ozempic and Wegovy, at $199, thereby enhancing patient access to medications.
See More
Amazon Enters GLP-1 Drug Market, Competing with Pharma Giants
- Intensifying Market Competition: Pharmaceutical giants Eli Lilly and Novo Nordisk are competing in the GLP-1 drug space, particularly as Novo Nordisk is set to regain market share by launching the oral version of Wegovy in 2026, which could shift overall market dynamics.
- Amazon's Market Opportunity: Amazon has begun selling the oral version of Wegovy, with monthly costs as low as $25 for insured customers and $149 for uninsured ones, positioning itself to capture significant retail market share due to its vast customer base and convenient purchasing options.
- Shifting Consumer Preferences: The introduction of oral GLP-1 drugs is expected to encourage more consumers to try these medications for weight loss, driving overall demand and benefiting all companies involved in this sector.
- Impact on Competitive Landscape: Companies like Hims & Hers, WW International, and GoodRx face tough competition, especially as GLP-1 drugs gain popularity; Amazon's 200 million Prime members provide it with a substantial advantage in the e-commerce space, potentially leading to a decline in market share for other competitors.
See More
Hims & Hers Launches New Weight Loss Pill
- Product Launch: Hims & Hers Health launched a compounded version of Novo Nordisk's popular weight-loss pill on Thursday, aiming to meet the growing consumer demand for weight-loss solutions amid increasing health consciousness.
- FDA Regulatory Challenges: While the new product garners market interest, potential FDA regulatory issues could pose a significant hurdle, necessitating the company to balance compliance with market promotion to ensure a successful launch.
- Increased Market Competition: Hims & Hers' entry into the weight-loss drug market may prompt competitors to intensify their efforts, leading to adjustments in product innovation and marketing strategies across the industry, thereby impacting the overall market landscape.
- Strategic Implications: This launch not only represents Hims & Hers' initiative to expand its product line but also reflects the company's ongoing investment in the health and beauty sector, aiming to attract more consumers and enhance market share through new offerings.
See More
US Stocks Plunge Sharply, Led by Technology Sector Declines
- Technology Sector Decline: Qualcomm (QCOM) forecasts Q2 revenue between $10.2 billion and $11.0 billion, below the consensus of $11.18 billion, leading to an over 8% drop in its stock and exacerbating the overall decline in the Nasdaq 100 index, heightening market panic.
- Weak Labor Market Signals: Challenger's report shows January job cuts surged 117.8% year-on-year to 108,435, marking the highest level since 2009, indicating fragility in the US labor market and increasing investor concerns about economic outlook.
- Bitcoin Price Crash: Bitcoin (^BTCUSD) is down more than 7% today, hitting a 1.25-year low and falling about 45% from its October record high, reflecting negative sentiment in the cryptocurrency market and a trend of capital outflows.
- Impact of Earnings Season: Despite 150 S&P 500 companies set to report earnings this week and 81% of the 237 companies that have reported exceeding expectations, market concerns over future economic data continue to suppress stock performance, with S&P earnings growth expected to reach 8.4% in Q4.
See More
Eli Lilly's Weight Loss Drug Revenue Exceeds $11 Billion
- Revenue Surge: Eli Lilly's weight loss portfolio generated over $11 billion in revenue in the recent quarter, highlighting its leadership in the rapidly growing weight loss drug market, which is expected to reach nearly $100 billion by the end of the decade.
- Market Share Growth: Lilly now holds a 60% market share in the weight loss drug sector, surpassing competitor Novo Nordisk, indicating increasing confidence among doctors in prescribing Lilly's medications, which could further enhance the company's growth potential.
- Medicare Coverage Impact: The pricing agreement Lilly struck with the Trump administration will allow Medicare to cover weight loss drugs for the first time, potentially making up to 30 million people eligible for GLP-1 treatments; while price reductions may impact growth, the increase in patient numbers could offset this effect.
- New Drug Approval Outlook: Lilly is awaiting regulatory approval for its weight loss pill, Orforglipron, with a decision expected by April 10; this oral formulation may attract more patients seeking convenience, further driving market growth for the company.
See More
Eli Lilly Analyst Raises Price Target to $1,300
- Strong Earnings Beat: Eli Lilly reported sales of $19.292 billion and earnings of $7.54 per share, exceeding consensus estimates of $17.944 billion and $6.91 per share, indicating robust market performance and profitability.
- Sales Growth Highlights: Zepbound sales reached $4.261 billion, surpassing Street expectations of $3.880 billion, while Mounjaro sales stood at $7.409 billion, also beating the consensus of $6.820 billion, reflecting strong product demand.
- Optimistic Future Outlook: Management guided for 2026 sales of $80-$83 billion and earnings per share of $33.50-$35.00, higher than consensus estimates of $77.64 billion and $33.04, showcasing the company's growth potential.
- Prominent Growth Profile: The analyst noted that Eli Lilly has the best growth profile in their coverage universe, with projected top-line growth of approximately 20% and bottom-line growth of around 40% by 2026, establishing a clear runway for sustained growth into the next decade.
See More
Eli Lilly Stock Rises Amid Regulatory Scrutiny
- Regulatory Impact: Eli Lilly's stock rose in after-hours trading as investors shifted focus to established FDA-approved drugmakers following regulatory warnings on compounded GLP-1 products, despite a nearly 8% drop during regular trading on Thursday.
- Analyst Target Increases: Analysts have raised price targets for Lilly, with Scotiabank increasing its target from $1,165 to $1,300, implying a 27% upside, reflecting confidence in the momentum of Lilly's obesity drug franchise.
- Strong Earnings Support: Lilly reported Q4 revenue of $19.3 billion, a 43% year-over-year increase, and forecasted 2026 revenue between $80 billion and $83 billion, exceeding consensus expectations and indicating robust growth in the GLP-1 market.
- New Drug Pricing Initiative: The launch of TrumpRx.gov aims to lower drug prices by connecting consumers directly with manufacturers, offering over 40 commonly used drugs, including Ozempic and Wegovy, at $199, thereby enhancing patient access to medications.
See More
Amazon Enters GLP-1 Drug Market, Competing with Pharma Giants
- Intensifying Market Competition: Pharmaceutical giants Eli Lilly and Novo Nordisk are competing in the GLP-1 drug space, particularly as Novo Nordisk is set to regain market share by launching the oral version of Wegovy in 2026, which could shift overall market dynamics.
- Amazon's Market Opportunity: Amazon has begun selling the oral version of Wegovy, with monthly costs as low as $25 for insured customers and $149 for uninsured ones, positioning itself to capture significant retail market share due to its vast customer base and convenient purchasing options.
- Shifting Consumer Preferences: The introduction of oral GLP-1 drugs is expected to encourage more consumers to try these medications for weight loss, driving overall demand and benefiting all companies involved in this sector.
- Impact on Competitive Landscape: Companies like Hims & Hers, WW International, and GoodRx face tough competition, especially as GLP-1 drugs gain popularity; Amazon's 200 million Prime members provide it with a substantial advantage in the e-commerce space, potentially leading to a decline in market share for other competitors.
See More
Hims & Hers Launches New Weight Loss Pill
- Product Launch: Hims & Hers Health launched a compounded version of Novo Nordisk's popular weight-loss pill on Thursday, aiming to meet the growing consumer demand for weight-loss solutions amid increasing health consciousness.
- FDA Regulatory Challenges: While the new product garners market interest, potential FDA regulatory issues could pose a significant hurdle, necessitating the company to balance compliance with market promotion to ensure a successful launch.
- Increased Market Competition: Hims & Hers' entry into the weight-loss drug market may prompt competitors to intensify their efforts, leading to adjustments in product innovation and marketing strategies across the industry, thereby impacting the overall market landscape.
- Strategic Implications: This launch not only represents Hims & Hers' initiative to expand its product line but also reflects the company's ongoing investment in the health and beauty sector, aiming to attract more consumers and enhance market share through new offerings.
See More
US Stocks Plunge Sharply, Led by Technology Sector Declines
- Technology Sector Decline: Qualcomm (QCOM) forecasts Q2 revenue between $10.2 billion and $11.0 billion, below the consensus of $11.18 billion, leading to an over 8% drop in its stock and exacerbating the overall decline in the Nasdaq 100 index, heightening market panic.
- Weak Labor Market Signals: Challenger's report shows January job cuts surged 117.8% year-on-year to 108,435, marking the highest level since 2009, indicating fragility in the US labor market and increasing investor concerns about economic outlook.
- Bitcoin Price Crash: Bitcoin (^BTCUSD) is down more than 7% today, hitting a 1.25-year low and falling about 45% from its October record high, reflecting negative sentiment in the cryptocurrency market and a trend of capital outflows.
- Impact of Earnings Season: Despite 150 S&P 500 companies set to report earnings this week and 81% of the 237 companies that have reported exceeding expectations, market concerns over future economic data continue to suppress stock performance, with S&P earnings growth expected to reach 8.4% in Q4.
See More
Eli Lilly's Weight Loss Drug Revenue Exceeds $11 Billion
- Revenue Surge: Eli Lilly's weight loss portfolio generated over $11 billion in revenue in the recent quarter, highlighting its leadership in the rapidly growing weight loss drug market, which is expected to reach nearly $100 billion by the end of the decade.
- Market Share Growth: Lilly now holds a 60% market share in the weight loss drug sector, surpassing competitor Novo Nordisk, indicating increasing confidence among doctors in prescribing Lilly's medications, which could further enhance the company's growth potential.
- Medicare Coverage Impact: The pricing agreement Lilly struck with the Trump administration will allow Medicare to cover weight loss drugs for the first time, potentially making up to 30 million people eligible for GLP-1 treatments; while price reductions may impact growth, the increase in patient numbers could offset this effect.
- New Drug Approval Outlook: Lilly is awaiting regulatory approval for its weight loss pill, Orforglipron, with a decision expected by April 10; this oral formulation may attract more patients seeking convenience, further driving market growth for the company.
See More
