On Tuesday, Argus maintained a Buy rating on Eli Lilly & Co. (NYSE:LLY) and increased its shares target to $840 from $770.
The revision reflects the company's successful sales of its antidiabetic drug Mounjaro and its new obesity medication Zepbound. Both medications are based on the active ingredient tirzepatide.
The company's recent achievements include positive Phase 3 results for tirzepatide in treating moderate-to-severe obstructive sleep apnea (OSA), which Eli Lilly plans to submit for global regulatory review.
Furthermore, the company is exploring tirzepatide for other conditions, including heart failure and metabolic dysfunction-associated steatohepatitis (MASH).
Eli Lilly is also progressing in its drug development pipeline. Recent data has highlighted the potential of lebrikizumab as a primary biologic treatment for patients with moderate-to-severe atopic dermatitis, post-topical prescription therapies, and across various skin tones.
The analyst from Argus anticipates that these drugs will significantly contribute to the company's growth in 2024 and the following years. The new price target of $840 suggests a total potential return, including dividends, of about 12% from the current stock price levels.
InvestingPro Insights
As Eli Lilly & Co. (NYSE:LLY) continues to make strides with its innovative treatments, the financial metrics reflect a company with significant market valuation and growth potential. According to InvestingPro data, Eli Lilly boasts a robust market capitalization of $682.24 billion USD, indicating its substantial presence in the pharmaceutical industry. The company's revenue growth over the last twelve months as of Q1 2024 stands at an impressive 29.76%, underscoring its successful sales and expansion efforts.
InvestingPro Tips highlight Eli Lilly's consistency in rewarding shareholders, with a history of raising its dividend for 9 consecutive years and maintaining dividend payments for 54 consecutive years. Moreover, the stock is known for low price volatility, which may appeal to investors seeking stability. Analysts have revised their earnings expectations upwards for the upcoming period, signaling confidence in the company's financial prospects.
For investors looking to delve deeper into Eli Lilly's financial health and future potential, additional InvestingPro Tips are available. There are 19 more tips to explore, which can provide further insights into the company's valuation multiples, profitability, and analysts' predictions. To access these valuable tips, visit https://www.investing.com/pro/LLY and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.