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Bank of America Boosts Eli Lilly: Obesity Drugs Drive Huge Upside
2 Dec
Summary
- Bank of America raised its price target for Eli Lilly stock to $1,286.
- Eli Lilly maintains a leading position in the crucial obesity and diabetes market.
- New drug launches are expected to accelerate Eli Lilly's revenue growth.
Bank of America has reiterated its 'buy' rating for Eli Lilly, significantly increasing its price target to $1,286 from $950, signaling a projected 22% growth. Analyst Tim Anderson highlighted Eli Lilly's firm leadership in the substantial obesity and diabetes market, driven by its GLP-1 drugs, Zepbound and Mounjaro. He expressed confidence in the company's ability to maintain this leading edge, forecasting sustained exceptional growth for many years.
Further bolstering this optimistic outlook is Eli Lilly's robust pipeline of new medications. Anderson anticipates the launch of the oral medication orforglipron by early 2026, sooner than previously expected, which will positively impact revenue and earnings forecasts. Additionally, the company is advancing its high-potency drug, retatrutide, with initial results anticipated by year-end.
The broader biopharmaceutical sector's increasing valuations also contribute to Eli Lilly's bullish prospects. This resurgence is partly attributed to clearer healthcare policy priorities. Shares of Eli Lilly have already experienced a notable 37% increase year-to-date, reflecting strong investor confidence.
