BMO Capital Markets (BMO) is beating the drum on Eli Lilly & Co.’s (LLY) stock ahead of the pharmaceutical giant’s upcoming financial results.
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BMO has reiterated a Buy-equivalent outperform rating and $900.00 price target on LLY stock. The price target is 16% higher than where the shares are currently trading. Analysts at BMO are bullish on Eli Lilly’s weight-loss drug Zepbound and also its Alzheimer’s drug trial, the results of which could be known by the fourth quarter of this year.
BMO Capital sees the new Alzheimer’s therapy as another potential blockbuster medication for Eli Lilly at a time when sales of Zepbound are accelerating. In its most optimistic scenario, BMO Capital forecasts that positive results from the Alzheimer’s drug study could boost LLY stock by about 7%.
Positive Developments
Beyond the Alzheimer’s drug trial results, BMO Capital also notes that Eli Lilly is expecting trial results of its weight-loss pill by the end of September, in what could be a gamechanger for the company and its share price.
Also, the U.S. Food and Drug Administration (FDA) recently approved a new dosing schedule for Eli Lilly’s existing Alzheimer’s medication, Kisunla, which significantly reduces the incidence of certain imaging abnormalities.
BMO is not the only firm that likes the set-up for LLY stock heading into its earnings on August 7. JPMorgan Chase (JPM) recently reiterated an overweight rating and price target of $1,100.00 on the stock, while UBS (UBS) maintained a Buy rating and $1,050.00 price target on the shares.
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 12 months. The average LLY price target of $1,006.80 implies 29.91% upside from current levels.
