Eli Lilly and Company, a pharmaceutical giant based in Indianapolis, is expected to report earnings of $1.93 per share, representing a year-over-year increase of over 2% from $1.89 per share a year ago.
The leading pharmaceuticals company would also post revenue growth of about 20% to $6.6 billion. According to ZACKS Research, the company has beaten earnings per share (EPS) estimates in two of the last four quarters.
Eli Lilly’s stock closed near an all-time high of $248.40 on Monday. The shares have gained over 45% so far this year.
“We are Overweight Eli Lilly (LLY) shares as we believe consensus underappreciates Lilly’s long-term revenue and EPS growth prospects. We project 2021e-2025e CAGR revenue +8% and EPS +15%. We see upside potential for pipeline candidate tirzepatide’s opportunity in diabetes and obesity,” noted Matthew Harrison, equity analyst at Morgan Stanley.
“Pipeline newsflow on diabetes and Alzheimer’s candidates could drive stock upside/downside. We view Eli Lilly’s (LLY) Alzheimer’s pipeline as an inexpensive call option. Lilly could pursue additional tuck-in transactions to enhance long-term growth prospects.”
Eli Lilly Stock Price Forecast
Eleven analysts who offered stock ratings for Eli Lilly in the last three months forecast the average price in 12 months of $247.70 with a high forecast of $300.00 and a low forecast of $193.00.
The average price target represents a 0.45% change from the last price of $246.60. From those 11 analysts, 10 rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.
Morgan Stanley gave the stock price forecast of $207 with a high of $248 under a bull scenario and $152 under the worst-case scenario. The firm gave an “Overweight” rating to the pharmaceutical company’s stock.
Several other analysts have also updated their stock outlook. Mizuho raised the target price to $250 from $216. Guggenheim lifted the target price to $258 from $246. Truist Securities upped the target price to $262 from $225.
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