JPMorgan Chase (JPM) is pounding the table on the stock of Eli Lilly & Co. (LLY) after its market capitalization recently surpassed $1 trillion.
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Analyst Chris Schott has raised his price target on LLY stock to $1,150 from $1,050 and reiterated a Buy-equivalent overweight rating on the shares. Schott said he decided to lift his price target on Eli Lilly’s stock after meeting with management.
The discussions with Eli Lilly reinforced the analyst’s positive view of the company and its future prospects. At the same time, Eli Lilly’s recent agreement with the Trump administration to expand access to obesity medicines through Medicare and Medicaid is a net positive for LLY stock.
Eli Lilly’s Bright Future
Schott also notes that Eli Lilly has positioned itself as the global leader in weight-loss medications, a position that is likely to strengthen over the next year as the company deploys its new weight-loss pill that is expected to be more enticing to consumers.
Eli Lilly is currently growing at a brisk clip, with its third-quarter revenue rising 54% year-over-year to $17.60 billion. That growth is likely to accelerate as the new weight-loss pill goes on sale, says JPMorgan. Plus, Eli Lilly has a robust medication pipeline that also includes treatments for type 2 diabetes and Alzheimer’s disease, helping to secure a bright future for the company.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 18 Buy and two Hold recommendations issued in the last three months. The average LLY price target of $1,035.22 implies 5.98% downside from current levels.
