Eli Lilly Stock (LLY) Target Raised To $1,250 As Analysts Grow Increasingly Bullish

Eli Lilly & Co. (NYSE: LLY) is experiencing a surge in market confidence, reflected in a revised price target from UBS, fueled by the company's strong positioning in the burgeoning obesity treatment market. The pharmaceutical giant's stock is currently holding above the $1,000 mark, trading at $1064.04, marking a substantial 37.6% increase over the past 12 months.

The upward revision comes as UBS analyst Michael Yee initiated coverage of Eli Lilly with a Buy rating and a new price target of $1,250, a significant jump from the previous $1,080. This bullish outlook is underpinned by Eli Lilly's consistent execution and dominant position in the obesity therapeutics landscape. UBS anticipates continued growth in this sector beyond 2026, driven by the anticipated launch of orforglipron, a promising treatment that may reach the market sooner than expected.

This optimistic forecast aligns with a broader trend of analyst upgrades for Eli Lilly. Morgan Stanley recently increased its price target to $1,290, citing the expanding GLP-1 market and Eli Lilly's growing U.S. market share with its incretin portfolio, which includes both weight loss and diabetes medications. Physician surveys further support this positive assessment, reinforcing the confidence in Eli Lilly's market trajectory.

Bernstein mirrored this sentiment, raising its price target to $1,300, anticipating substantial earnings upside from the orforglipron launch. Bernstein projects impressive 2026 sales of $1.8 billion for orforglipron, significantly exceeding the current consensus estimate of $550 million. The firm also believes that recent government actions related to GLP-1 drugs will particularly benefit Eli Lilly, given its market share and launch timing. J

PMorgan also joined the chorus, increasing its price target to $1,150, driven by optimism surrounding Eli Lilly's obesity drug outlook following discussions with the company's management.

Eli Lilly's strategic moves further bolster its position in the market. The company's recent acquisition of gene therapy company Verve for $1 billion, plus a potential $300 million milestone payment, is viewed as a sensible “bolt-on” acquisition that could enhance its long-term growth prospects.

More significantly, Eli Lilly is making substantial investments in its manufacturing capabilities. The company is investing $6 billion to build a new manufacturing plant in Huntsville, Alabama, dedicated to producing orforglipron.

This facility is part of a broader $27 billion commitment to expand its manufacturing capacity in response to the increasing demand for obesity and diabetes treatments.

The series of positive analyst updates and the company's strategic investments highlight Eli Lilly's commitment to addressing the growing global obesity epidemic. With a strong pipeline of potential blockbuster drugs and a proactive approach to expanding its manufacturing capacity, Eli Lilly appears well-positioned to capitalize on the expanding market for obesity treatments.

The upward revisions in price targets reflect this growing confidence and could signal further gains for the stock in the months ahead, depending on clinical trial outcomes and regulatory approvals.