Stock Price & Analysis

Buy LLY stock as it shows strong growth potential with positive clinical trial results and favorable analyst ratings. Sell LLY stock if you prefer to lock in profits amid mixed technical indicators and competitive market dynamics.

Eli Lilly's stock is expected to reach $950 by the end of 2025, driven by strong demand for its obesity and diabetes drugs, Mounjaro and Zepbound, as well as its robust 2025 sales guidance of $58-$61 billion. The company's Q4 2024 earnings surpassed expectations, with revenue up 45% year-over-year, further boosting investor confidence. Analysts maintain a "Strong Buy" consensus with a mean price target of $988.61, supporting the bullish outlook.

The S1 support level for LLY Stock is $833.31 ,The R1 resistant level for LLY Stock is $928.03.

As of the end of day on 2025-03-11, the price of LLY Stock was $821.

The target price for LLY Stock according to analyst rating is 1,029, with the highest price target at 1,190 and the lowest at 900.00. Analysts have a Strong Buy rating on LLY Stock overall.

The market cap of LLY is $781.3B.

Analysis and Insights

To determine whether Eli Lilly (LLY) is overvalued, we analyze its valuation metrics, growth prospects, and market sentiment.

Valuation Metrics:

Eli Lilly's current valuation metrics suggest a premium relative to industry peers:

• P/E Ratio: 114.5, significantly higher than the industry average, indicating a growth premium.
• EV/EBITDA: 54, reflecting strong earnings growth expectations.
• P/S Ratio: 19.54, indicating investors are paying a high price per dollar of sales.
• P/B Ratio: 57.71, suggesting the market values the company significantly above its book value.

Growth Prospects:

Eli Lilly's revenue growth has been robust, driven by its GLP-1 drugs (Mounjaro and Zepbound), which generated $5.4 billion in Q4 2024, accounting for 40% of total revenue. The company is also advancing its pipeline, including an oral weight-loss drug (orforglipron) expected to enter late-stage trials soon.

Market Sentiment:

Analysts remain largely bullish, with a consensus "Strong Buy" rating and price targets as high as $1,100. However, some caution exists due to the stock's high valuation and dependency on GLP-1 drug sales.

Technical Analysis:

The stock's technical indicators show mixed signals, with an RSI of 49.18, indicating it is not oversold. The MACD is positive but showing a bearish crossover, suggesting potential near-term volatility.

Conclusion:

While Eli Lilly's valuation appears stretched, its strong growth trajectory and robust pipeline justify the premium. However, investors should monitor whether the company can sustain its growth momentum.

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Eli Lilly and Company is engaged in drug manufacturing businesses. The Company discovers, develops, manufactures and markets products in the human pharmaceutical products segment. Its diabetes, obesity and other cardiometabolic products include Basaglar, Humalog, Humulin, Jardiance, Mounjaro, Trulicity and Zepbound. Its oncology products include Alimta, Cyramza, Erbitux, Jaypirca, Retevmo, Tyvyt and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh and Taltz. Its neuroscience products include Cymbalta and Emgality. Its other products and therapies include Cialis and Forteo. The Company manufactures and distributes its products through facilities in the United States (U.S.), including Puerto Rico, and in Europe and Asia. The Company, through its subsidiary, POINT Biopharma Global Inc., is engaged in radiopharmaceutical discovery, development, and manufacturing, as well as clinical and pre-clinical radioligand therapies in development for the treatment of cancer.

Eli Lilly (LLY) stock is predicted to reach $1,200 by 2030, driven by strong demand for its diabetes and obesity treatments like Mounjaro and Zepbound. Analysts expect continued innovation and market expansion to fuel growth. The company's robust pipeline and growing revenue provide a solid foundation for long-term appreciation.

LLY has a total of 43000 employees.