Wall Street brokerage Bernstein is pounding the table on Eli Lilly (LLY) stock ahead of the pharmaceutical company’s first-quarter financial results on April 30.
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Courtney Breen, a top four-star rated analyst, reiterated a Buy-equivalent outperform rating and $1,300 price target on LLY stock heading into the company’s upcoming print. The price target is 40% higher than where the pharmaceutical giant’s stock currently trades.
The firm sees a path for Eli Lilly to beat first-quarter expectations and raise full-year guidance. Bernstein also likes the set-up for Eli Lilly’s stock the rest of this year as the company successfully launches its new weight-loss pill called Foundayo.
Eli Lilly’s Strong Momentum
Breen also notes that Eli Lilly’s momentum remains strong, with revenue growth of 45% over the past year, and that was before Foundayo received U.S. regulatory approval on April 1 of this year. There’s every reason to believe that Eli Lilly’s strong momentum will continue moving forward.
Bernstein also likes Eli Lilly’s recently announced acquisition of Kelonia Therapeutics for $7 billion, saying it enhances Eli Lilly’s portfolio of new drugs. Other catalysts likely to give LLY stock a boost this year include potential Medicare coverage of weight-loss medications, which would help grow the market.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 16 Buy, two Hold, and one Sell recommendations issued in the last three months. The average LLY price target of $1,247.38 implies 31.53% upside from current levels.
