BMO Capital Markets (BMO) is pounding the table on Eli Lilly’s (LLY) stock as the pharmaceutical giant launches its new weight-loss pill.
Claim 55% Off TipRanks
Forget margin or options. Here's how the pros trade AMZNThe brokerage reiterated a Buy-equivalent outperform rating and $1,300 price target on LLY stock, citing benefits from blockbuster sales of the company’s new obesity pill called Foundayo. The BMO price target is 44% higher than where LLY stock currently trades.
Eli Lilly has projected that Foundayo will generate between $1.5 billion and $2.8 billion in U.S. sales this year. Wall Street analysts anticipate rapid uptake of the weight-loss pill due to its convenience as a daily oral medication, with peak sales estimated at up to $36 billion per year.
The Outlook for Eli Lilly
Eli Lilly is scheduled to report its first-quarter earnings on April 30 of this year. Analysts and shareholders will be looking for updates on Foundayo’s launch during the earnings call with management. The FDA approved Foundayo on April 1, triggering a global launch and marketing campaign from Eli Lilly.
Foundayo is being sold through Weight Watchers (WW), as well as by e-commerce giant Amazon (AMZN), which is offering same-day delivery of the medication. The weight-loss pill is also widely available through retail pharmacy and wholesale channels.
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 three months. The average LLY price target of $1,247.38 implies 31.53% upside from current levels.
