Eli Lilly has seen a remarkable 52% increase in its stock price over the past year, largely driven by the growing adoption of its GLP-1 medications, Mounjaro and Zepbound, for weight management. Berenberg analyst Kerry Holford upgraded the stock from hold to buy and raised the price target from $1,220 to $1,400, indicating a potential 23% upside from its recent closing price.
Holford expressed confidence in Lilly's ability to maintain its leadership in the expanding obesity market and highlighted the underestimated potential of the company's external pipeline investments fueled by its obesity drug success. The anticipated approval of Foundayo, an oral GLP-1, is expected to significantly boost demand, further enhancing the company's growth prospects.
With 27 out of 34 analysts rating the stock as a buy or strong buy, the consensus reflects strong market confidence in Eli Lilly's future performance. Following the upgrade, shares rose more than 1% in premarket trading, signaling positive investor sentiment