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Eli Lilly and Company (LLY), with a market cap of $733.85 billion, is a global leader in the pharmaceutical industry. Headquartered in Indianapolis, Indiana, Eli Lilly is dedicated to discovering, developing, and delivering innovative medicines that improve quality of life. With a robust portfolio of treatments spanning various therapeutic areas, Eli Lilly serves millions of patients globally, focusing on critical health challenges such as diabetes, cancer, and mental health.
Eli Lilly has significantly outperformed the broader market over the last year. The stock has gained 62.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 18.2%. Also, in 2024, the stock is up 45% compared to SPX's 11.5% gains on a YTD basis.
Narrowing the focus, LLY has also outperformed the iShares U.S. Pharmaceuticals ETF’s (IHE) 10.6% returns on a YTD basis.
The stock’s performance has been largely driven by the success of its weight-loss drugs, promising early results for donanemab, and the company’s dominance in the pharmaceutical industry.
On Aug. 8, Eli Lilly reported its Q2 results. The stock rose over 9% after the earnings report. The company reported revenue and EPS of $11.30 billion and $3.92, beating Wall Street estimates of $9.83 billion and $2.64, respectively. LLY expects full-year revenue between $16.10 and $16.60 per share, with revenue between $45.4 billion and $46.6 billion.
For the current fiscal year, ending in December, analysts expect LLY’s EPS to grow 118.2% to $13.79 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 22 analysts covering LLY stock, the consensus rating is a “Strong Buy.” That’s based on 19 “Strong Buy” ratings, one “Moderate Buy,” and two “Holds.”
This configuration is slightly more bullish than three months ago, with 18 suggesting a “Strong Buy.”
On Aug. 5, Barclays analyst Carter Gould maintained a “Buy” rating on Eli Lilly, with a price target of $1025, which indicates a 21.3% upside from the current levels.
The mean price target of $927.74 represents a 9.8% premium to LLY’s current price levels. The Street-high price target of $1,117 suggests an upside potential of 32.1%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
