On Friday, Guggenheim analysts revised their price target for Eli Lilly (NYSE:LLY) shares, reducing it to $973.00 from the previous $995.00, while reiterating a Buy rating on the stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 81.85, indicating a premium valuation relative to its peers.
Analyst targets range from $580 to $1,250, reflecting diverse views on the company's growth potential. The adjustment comes as Eli Lilly provided clarity on its 2024 guidance and announced its 2025 revenue expectations, which are anticipated to range between $58 billion and $61 billion. This forecast aligns closely with Guggenheim and consensus estimates of approximately $58.3 billion and $58.5 billion, respectively.
The company's strong financial health is evidenced by its impressive 80.91% gross profit margin and 27.41% revenue growth over the last twelve months. InvestingPro subscribers have access to over 15 additional key insights about Eli Lilly's financial performance and market position.
The company's fourth-quarter earnings for 2024 are expected to draw significant attention, with a particular focus on the comprehensive 2025 financial guidance. Analysts predict that profit and loss trends will likely mirror those seen in previous years. Moreover, assumptions regarding the performance of the diabetes drug tirzepatide in 2025 will be scrutinized, especially concerning international markets and the dynamics of access and stocking.
Eli Lilly's near-term pipeline developments are also under the spotlight, especially the Phase 3 results for the drug orforglipron, which are due to start being reported in late second quarter of 2025. With a market capitalization of $682 billion and a beta of 0.41, Eli Lilly demonstrates relative stability compared to the broader market.
For detailed analysis of Eli Lilly's pipeline and market position, investors can access the comprehensive Pro Research Report available on InvestingPro. The company's revenue and earnings per share (EPS) for 2025 have been estimated by Guggenheim at $58,340 million and $22.34, respectively, which is slightly below the consensus EPS estimate of $22.56.
The sales projections for two of Eli Lilly's products, Mounjaro and Zepbound, are pegged at $18.3 billion and $11.1 billion for 2025. These figures surpass consensus estimates of $18.1 billion and $9.8 billion, reflecting confidence based on current prescription trends and the company's expectations for stable pricing in the near term. Eli Lilly's financial outlook and pipeline progress remain key factors for investors as they evaluate the company's performance heading into the upcoming earnings announcement.
In other recent news, Eli Lilly, a pharmaceutical giant, has received FDA approval for Omvoh, a drug designed to treat adults with moderately to severely active Crohn's disease. This approval comes after the drug demonstrated effectiveness in achieving clinical remission and endoscopic response in the Phase 3 VIVID-1 trial. In addition, Eli Lilly has recently acquired Scorpion Therapeutics' PI3Kα inhibitor program in a deal that could reach up to $2.5 billion.
Analysts from various firms such as Bernstein, BMO Capital, Wells Fargo (NYSE:WFC), BofA Securities, and Citi have maintained positive ratings on Eli Lilly, despite the company's Q4 revenue falling short of the consensus estimate. The company's revenue for 2025 is projected to be between $58 and $61 billion, indicating a positive growth outlook.
Furthermore, Eli Lilly has filed marketing applications for Omvoh in Crohn's disease in the European Union and Japan, with additional global submissions planned. The company has also provided patient support programs, including co-pay assistance, for eligible patients. These are some of the recent developments for Eli Lilly.
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