Eli Lilly downgraded to Reduce from Hold at HSBC

HSBC analyst Rajesh Kumar downgraded Eli Lilly (LLY) to Reduce from Hold with a price target of $850, down from $1,070. The firm thinks expectations for obesity’s total addressable market are elevated at over $150B. The market is likely to be $80B-$120B by 2032, and price competition “is likely to be significant,” the analyst tells investors in a research note. HSBC says Eli Lilly’s obesity price cuts in 2026 are a headwind while its guidance implies that it can continue to “defy gravity with volume growth.” While the oral launch might expand access to anti-obesity medications, the “compliance and persistence of these drugs might disappoint,” adds HSBC. It thinks oral drug launch expectations for Lilly are too high.