BMO Capital Markets (BMO) has become the latest brokerage to reaffirm a Buy rating on the stock of pharmaceutical company Eli Lilly and Co. (LLY).
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Specifically, BMO reiterated a Buy-equivalent outperform rating on LLY stock with an $840 price target. The positive view comes as the pharmaceutical company prepares to seek regulatory approval for its new weight-loss pill called Orforglipron.
Like other Wall Street firms, BMO expects the new weight-loss pill to be a big sales driver for Eli Lilly and help the company gain more market share in the red-hot market for weight-loss medications. Management at Eli Lilly has said they plan to launch the weight-loss pill in summer 2026.
Stampeding Bulls
BMO Capital Markets isn’t the only brokerage to issue a bullish note on LLY stock in recent weeks. Banks and brokers including HSBC (HSBC), Morgan Stanley (MS), and Truist Financial (TFC) have all reiterated Buy ratings on the stock and lifted their price targets for the shares.
The upcoming weight-loss pill is expected to be a game-changer for Eli Lilly, its sales, and its stock price. Wall Street is forecasting that the weight-loss pill could generate annual sales of $15.5 billion by 2032. Jefferies Financial Group (JEF) recently said that it expects sales of the pill to peak at $25 billion a year.
LLY stock has declined 4% this year.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Moderate Buy rating among 22 Wall Street analysts. That rating is based on 16 Buy and six Hold recommendations issued in the last three months. The average LLY price target of $904.76 implies 24.01% upside from current levels.
