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Eli Lilly Shares Up 1.13% on Monday, Analyst Price Target Still Some Way In Distance

Analyst Team trader
Updated 19 Mar 2024

(NYSE:LLY) Eli Lilly Share Price Closed up 1.13% on Monday, back in positive territory for the month. In a significant industry update, Eli Lilly's innovative anti-obesity drug, Zepbound, is setting a promising trajectory for the pharmaceutical giant, leading to an overhaul of stock price expectations by market analysts. With obesity affecting 41.9% of US adults and having doubled globally over the past 25 years, a solution of this magnitude has far-reaching implications and the potential to become the top-selling drug in history.

Eli Lilly, celebrated for its dynamic approach to drug development and its robust financial investment in R&D, has struck gold with Zepbound. In a notable milestone, the drug achieved a remarkable 77,590 new U.S. prescriptions within a single week, swiftly overshadowing the leading competitor, Novo Nordisk's Wegovy. This compelling early performance has positively reverberated through the financial markets, where valuation of Lilly's prospects is now viewed through a refreshed lens.

Seizing the attention of industry analysts, JPMorgan Chase has adjusted its share price target for Eli Lilly to an impressive $850, a substantial increase from the prior target of $775. This revised figure is a testament to Zepbound's success and its expected dominance in the pharmaceutical market. JP Morgan was quoted as saying that LLY “remains optimally positioned” in both the diabetic and obesity markets.

The financial implications for Eli Lilly have been clear; YTD the stock has surged by 28.78%, with the Q4 income 13% higher than the same period last year. It's a sign of the times for Eli Lilly, whose portfolio is increasingly characterized by drugs with blockbuster potential.

However, despite the positive gust in its sails, some analysts are not quite so keen on the stock, with the low price target being $610, albeit against a consensus of $830.67, a little below the increased target given by JP Morgan. Despite the hike, JP Morgan's is not the highest price on deck, with a $1000 watermark setting the bar high.

As investors, traders, and healthcare professionals alike monitor Eli Lilly's journey, the conversation is sure to gravitate around not only the financial metrics but also the potential social impact of Zepbound's contribution to combating the obesity epidemic.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.