JPMorgan (JPM) just gave Eli Lilly (LLY) stock a fresh shot of adrenaline — a new $1,100 forecast and a bullish Buy rating that has Wall Street watching every move the pharma giant makes.
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The call, from analyst Chris Schott, isn’t just about momentum. It’s about dominance. Eli Lilly is crushing the obesity drug race, holding a 60% market share and onboarding half a million new patients every month. And Schott sees more where that came from.
Eli Lilly’s Blockbusters Have Fueled Confidence
Lilly’s key drugs, Mounjaro and Zepbound, aren’t just leading their categories, they’re creating them. Despite CVS Health (CVS) removing Zepbound from its preferred list, the drug continues to soar, capturing 75% of new treatment starts. That speaks volumes about patient demand and clinical effectiveness.
Coming up next is orforglipron — a pill, not an injection. It’s a potential game-changer for the industry and for Lilly’s portfolio. JPMorgan believes this could be the key to extending treatment duration and expanding usage internationally. It might not outperform Zepbound, but its pill format gives it strategic utility that injections just can’t match.
New Drugs Extend the Lead
Zepbound isn’t Lilly’s final trick. Retatrutide, nicknamed “Triple G,” is currently in late-stage trials and could be even more effective. With multiple new therapies in the pipeline and trial data arriving sooner than expected, Lilly is aggressively cementing its first-mover advantage.
Unlike many pharma stocks, Eli Lilly isn’t staring down a cliff of lost exclusivity. Schott points to limited patent risk through the 2030s, giving the company long runway to grow revenue and earnings.
LLY’s Valuation Still Has Room to Run
Earnings are expected to top $55 a share by 2030. That would more than quadruple from 2023’s $13 EPS. Even now, with shares around $790, Schott sees a 39% upside to his $1,100 target. UBS, meanwhile, has its own bullish call with a $1,050 target.
Is Eli Lilly a Good Stock to Buy Now?
According to TipRanks, Eli Lilly earns a Strong Buy rating. Out of 20 analyst ratings, 17 are Buys, two are Holds, and one is a Sell. The average 12-month LLY price target sits at $998.56, suggesting more than 26% upside from current levels.
