BMO Capital Markets (BMO) is pounding the table on Eli Lilly’s (LLY) stock, saying that the pharmaceutical giant should benefit from a coming “onshoring boom” in the U.S.
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Analysts at BMO reaffirmed their $900 price target and Buy-equivalent outperform rating on LLY stock ahead of the company’s financial results that are scheduled for release on Aug. 7. In a note to clients, BMO said that Eli Lilly is well-positioned to capitalize as manufacturing moves back to the U.S. from foreign destinations in coming years.
Eli Lilly already does the bulk of its manufacturing in the U.S. and pledged earlier this year to invest an additional $27 billion in its American operations over the next five years, including building four new manufacturing facilities. This brings the company’s U.S. manufacturing investment to $50 billion since 2020.
Alzheimer’s Trial
In addition to its U.S. manufacturing presence, Eli Lilly is likely to get a boost from the interim results of its Alzheimer’s drug trial, which could be made public as early as the fourth quarter of this year. In the best-case scenario, BMO Capital Markets forecasts that LLY stock will rise by about 7% if the interim results from the Alzheimer’s treatment are positive.
Eli Lilly’s Alzheimer’s treatments are expected to complement the company’s blockbuster weight-loss and diabetes medications, which are taking market share from rivals such as Novo Nordisk (NVO). BMO Capital Markets is the latest Wall Street firm to issue a bullish outlook for LLY stock ahead of earnings.
LLY stock is down 0.38% this year.
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 17 Buy and two Hold recommendations issued in the last 12 months. The average LLY price target of $1,028.80 implies 34.30% upside from current levels.
