"Confident Leadership. Bank of America expects Eli Lilly shares to grow by more than 20%
Bank of America reaffirmed its "buy" recommendation for shares of pharmaceutical company Eli Lilly and raised the target forecast for its securities from $950 to $1286, CNBC reports. This estimate assumes growth of about 22% from the current figures.
What is the driver of growth?
Eli Lilly, according to estimates by Bank of America analyst Tim Anderson, together with its drugs Zepbound and Mounjaro, holds a "strong lead" in the market for the treatment of obesity and diabetes. The company's drugs improve insulin production when blood sugar levels are high, which helps reduce appetite and ultimately promotes weight loss.
In addition, Anderson continued, he estimates that Eli Lilly will have to release its new oral drug in this area - Orforglipron tablet for the treatment of type 2 diabetes and obesity - several months earlier than expected: in early 2026 instead of late 2026. All because the company was "one of the first" to qualify for accelerated review of its drug by the U.S. Food and Drug Administration, the expert explained. All this, Anderson added, raises his forecasts for Eli Lilly's revenue and earnings in the coming year.
What else should drive the company
In addition, Anderson added, Eli Lilly continues to develop its "highly active Retatrutide product (also known as the 'three G's')." The drug in question is an experimental Eli Lilly drug. It too is designed to treat obesity and type 2 diabetes. The first results of its trials are expected by the end of the year, Bank of America expects.
Another bullish factor for Eli Lilly shares, according to Anderson, will be market sentiment in the coming months. Investors have renewed their interest in the pharma sector amid the clarification of healthcare priorities by the administration of U.S. President Donald Trump, the analyst believes.
Context
The health care sector was the top favorite in the U.S. market in November. With investors revising their bets on AI companies, the S&P 500 Health Care index added 9% over the month - the best result among all 11 sectors of the benchmark. Additional impetus was provided by the inflow of funds from hedge funds: according to Goldman Sachs, investments in the pharmaceutical sector reached the maximum over the last five years.
What are other analysts saying?
On December 2 Berenberg raised target price on Eli Lilly shares from $830 to $950, keeping neutral recommendation. In general, analysts observing the securities of the pharmaceutical company are positively disposed towards them and recommend to buy them. They are 21 out of 31. Eight of them advise to keep them in the portfolio, one - to sell them.
This article was AI-translated and verified by a human editor
