JPMorgan Chase (JPM) rates Eli Lilly’s (LLY) stock a Buy.
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Analyst Chris Schott has placed a Buy rating on LLY stock and a price target of $1,050 per share. The price target is nearly 40% above where Eli Lilly’s stock is currently trading. The strong rating and price target are due to Eli Lilly’s market position and growth potential related to its weight-loss medications.
Schott said that the current share price and valuation of LLY stock do not fully account for the positive operational trends and reduced risk in the company’s drug pipeline. He expects Eli Lilly’s shares to outperform in the coming year, driven by a series of catalysts, including the launch of a new weight-loss pill called Orforglipron that is expected to be a game-changer for weight-loss medicines.
Pricing Pressure
JPMorgan also notes that Eli Lilly is well-positioned to handle any pricing pressures that emerge with weight-loss drugs due to its robust portfolio, which caters to a wide range of patient needs. While the pharmaceutical giant is expected to benefit from its leadership in the weight-loss drug market, it has other medications in its pipeline.
Eli Lilly’s diverse pipeline includes medicines to treat Alzheimer’s disease and various cancers. The company’s diversified pipeline should help to limit the risk of loss of exclusivity over the next decade, making LLY stock a top pick in the pharmaceutical sector for JPMorgan Chase. In a separate bullish note, analysts at Wells Fargo (WFC) reiterated a Buy rating on LLY stock with a $1,100.00 price target.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 22 Wall Street analysts. That rating is based on 17 Buy and five Hold recommendations issued in the last three months. The average LLY price target of $898.71 implies 18.84% upside from current levels.
