Eli Lilly’s Strong Market Position and Innovative Drug Pipeline Justify Buy Rating with Target Price of USD 1,010

Nico Chen, an analyst from DBS, maintained the Buy rating on Eli Lilly & Co (LLY – Research Report). The associated price target is $1,010.00.

Nico Chen has given his Buy rating due to a combination of factors including Eli Lilly’s impressive financial growth projections and its strong position in the pharmaceutical market. The company’s revenue is expected to accelerate significantly, with a compound annual growth rate (CAGR) increasing from 16.7% in the fiscal years 2021-2024 to 21.3% in 2024-2027. Additionally, Eli Lilly’s net profit margin is projected to rise from 26.1% in 2024 to 39.5% in 2027, driven by the anticipated success of its new oral weight-loss drug and other drugs in its pipeline.
Another key factor influencing the Buy rating is the potential impact of Eli Lilly’s weight-loss and diabetes treatments on its share price. The company’s drugs, Mounjaro and Zepbound, have already captured a significant portion of the market, and the development of its oral GLP-1 drug, Orforglipron, is expected to further enhance its market presence. The upcoming phase 3 trial results for Orforglipron could provide a substantial boost to the company’s share price. Despite the looming patent expiration of Trulicity in 2027, Eli Lilly’s strategic focus on innovative therapeutics and its strong market position justify the Buy rating with a target price of USD 1,010.

In another report released yesterday, UBS also reiterated a Buy rating on the stock with a $1,050.00 price target.