Analysts are coming to the defense of Eli Lilly (LLY) after the pharmaceutical company’s stock suffered its worst decline since the 2008 financial crisis.
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LLY stock fell more than 15% in recent days after the company released clinical trial data on its weight-loss pill that disappointed investors. The trial results showed that people taking the daily pill lost 12% of their body weight. Wall Street had expected patients to lose 15% of their weight, sending Eli Lilly’s shares crashing.
However, analysts seem to agree that the selloff in LLY stock has been overdone, especially as the clinical trial results were issued alongside beat-and-raise quarterly results from the pharma concern. Eli Lilly reported top- and bottom-line beats for this year’s second quarter and raised its forward guidance. Sales of the company’s weight-loss drug Zepbound were up 172% from the same period in 2024.
Upgrades Galore
Owing to the strong Q2 financial results, analysts across Wall Street have largely reaffirmed their Buy ratings on LLY stock post-earnings. Jefferies Financial Group (JEF) lowered its price target on Eli Lilly’s shares to $905 from $1,057 while maintaining a Buy rating on the stock. Similarly, BMO Capital Markets (BMO) dropped its price target on Eli Lilly to $840 from $920 while maintaining a Buy-equivalent rating.
Analysts point out that not only are Eli Lilly’s weight-loss drug sales soaring, but the company is also taking market share from main competitor Novo Nordisk (NVO). Also, while the obesity pill trial may have disappointed some, the results are good enough to get the oral weight-loss medication approved by the U.S. Food and Drug Administration in early 2026, giving Eli Lilly another blockbuster drug.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 21 Wall Street analysts. That rating is based on 17 Buy and four Hold recommendations issued in the last three months. The average LLY price target of $946.89 implies 47.81% upside from current levels.
