BMO Capital Markets (BMO) has reiterated its Buy-equivalent outperform rating on Eli Lilly’s (LLY) stock.
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Analysts at BMO also maintained a $1,100.00 price target on LLY stock. The bullish note comes a day after the pharmaceutical company announced that it is reducing prices for its Zepbound weight-loss medication on its direct-to-consumer platform.
BMO Capital Markets said in a note to clients that the reduction in Zepbound’s price should expand access to the weight-loss drug for patients in the U.S. and abroad, and boost sales going forward. BMO added that any pricing headwinds resulting from the reduction should be offset by volume gains as more patients gain access to the medication.
Eli Lilly’s Price Cut
In a move that’s being cheered by investors, Eli Lilly plans to lower the price consumers pay out-of-pocket for a Zepbound starter dose to $299 a month, with additional reductions for higher-dose forms of the weight-loss treatment.
The latest price cut follows Eli Lilly’s previous agreement with the Trump administration to lower the price for the multi-dose form of Zepbound to $299 in exchange for the medication receiving coverage under Medicare and Medicaid plans in the U.S.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 18 Buy and two Hold recommendations issued in the last three months. The average LLY price target of $1,035.22 implies 5.98% downside from current levels.
