Analysts at British bank HSBC (HSBC) have upgraded the stock of Eli Lilly (LLY) now that the pharmaceutical giant’s weight-loss pill looks likely to be approved by regulators for commercial sale.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
HSBC had been one of the few bears when it came to Eli Lilly. However, the bank now says that the bear case against LLY stock has played out and that the share price is likely to react positively to news that the company’s weight-loss pill passed a late-stage clinical trial and is on track for approval in 2026.
Rajesh Kumar, a top four-star rated analyst with a 62% success rate, raised his rating on LLY stock to Hold from Sell previously. He also lifted his price target on the shares to $700 from $675. Now that HSBC has upgraded Eli Lilly, there are no sell ratings on the stock.
Bright Future
The positive results from the late-stage clinical trial have provided Eli Lilly with a clear path for the weight-loss pill’s approval and commercialization. Wall Street is forecasting that Eli Lilly’s weight-loss pill could generate annual sales of $15.5 billion by 2032.
The pill is expected to be a game-changer for weight-loss medications, which are currently taken by injection. The U.S. Food and Drug Administration (FDA) is expected to approve the weight-loss pill in spring 2026 and Eli Lilly plans to have it widely available next summer. LLY stock has declined 4% this year.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 17 Buy and six Hold recommendations issued in the last three months. The average LLY price target of $910.61 implies 23.14% upside from current levels.
