Eli Lilly (LLY) has received another bullish report ahead of its upcoming earnings on August 7.
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Bank of America (BAC) has reiterated a “Buy” rating and $1,000 price target on LLY stock. The price target is 25% higher than where Eli Lilly’s shares currently trade. In a note to clients, Bank of America cited Eli Lilly’s growth prospects and strong position in the weight loss and diabetes drug markets.
The analysts also adjusted their revenue and earnings estimates for Eli Lilly through 2026, driven primarily by higher sales expectations for the company’s blockbuster weight-loss drug Zepbound. Bank of America now expects 2025 revenue to rise 1% and earnings per share to increase by 1.9%.
Potential Risks
While Bank of America remains bullish on LLY stock overall, analysts at the financial institution have identified some risks to the outlook for Eli Lilly. These include U.S. drug pricing risks and potential tariffs placed on pharmaceuticals. U.S. President Donald Trump has threatened tariffs of up to 200% on pharmaceutical imports into America.
Despite some potential clouds on the horizon, Eli Lilly should continue to benefit from the launch of new obesity treatments, including a potential weight-loss pill, as well as the company’s new drug Kisunla that is used to treat Alzheimer’s disease. “We continue to like LLY,” wrote Bank of America, adding that the stock is “not expensive on a PE-to-growth basis, by our math.”
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy recommendation among 20 Wall Street analysts. That rating is based on 17 Buy, two Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $998.56 implies 26.14% upside from current levels.
