Citigroup Sees 50% Upside in Eli Lilly Stock (LLY)

U.S. bank Citigroup (C) has raised its price target on Eli Lilly’s (LLY) stock as it expects weight-loss drug sales to accelerate in coming years.

Citigroup raised its price target on LLY stock to $1,500 from $1,250 previously while reiterating a Buy rating on the shares. The new price target is 50% higher than where Eli Lilly’s stock is currently trading. The raised price target comes as LLY stock trades above $1,000 a share for the first time, having hit a new all-time high of $1,022.42.

LLY stock has been ripping higher after the company reported strong financial results for this year’s third quarter, driven by demand for its weight-loss medications. In a note to clients, Citigroup estimates peak annual sales for Eli Lilly’s weight-loss drugs at $40 billion.

Weight-Loss Pill

Geoff Meacham, a top four-star rated analyst at Citigroup, highlights the accelerating expectations for Eli Lilly’s upcoming weight-loss pill called Orforglipron. Meacham writes that expectations for the oral medication “have steadily risen given a competitive product profile, high consumer interest, and broadening access.”

The weight-loss pill is expected to broaden the appeal and demand of Eli Lilly’s obesity treatments. Currently, weight-loss drugs are taken by injections that are unpopular with many consumers. After a recent meeting with Eli Lilly’s management team, Meacham said Citigroup has become “increasingly bullish on the Orforglipron launch which adds significant optionality to shares.”

The bank expects that Eli Lilly’s weight-loss pill could receive regulatory approval in the U.S. during the first quarter of 2026.

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 17 Buy and three Hold recommendations issued in the last three months. The average LLY price target of $999.28 implies 1.06% downside from current levels.

Read more analyst ratings on LLY stock