Fed Governor Cook sues Trump over firing attempt
On Tuesday, Bernstein analysts maintained a positive stance on Eli Lilly (NYSE:LLY) shares, reiterating their Outperform rating and setting a price target of $1,100.00. With a market capitalization of $683 billion and an overall consensus rating of 1.57 (Strong Buy), Eli Lilly stands as a prominent player in the pharmaceuticals industry. According to InvestingPro analysis, the company is currently trading above its Fair Value. The firm’s analysts highlighted Eli Lilly’s consistent performance, noting that the pharmaceutical company continues to capture market share at a pace exceeding both its supply guidance and the growth of its competitor, Novo Nordisk (NYSE:NVO). This growth is reflected in the company’s impressive 32% revenue growth and robust gross profit margin of 81.3% over the last twelve months.
Eli Lilly’s market share, particularly in the semaglutide and tirzepatide categories, has seen an uptick in the most recent four-week period, reaching 51.5%, a slight increase from 51% the previous week. This incremental growth further solidifies Eli Lilly’s leadership in the market.
The analysts specifically pointed out the success of tirzepatide, driven by the product Zepbound, which saw its market share increase to 19.8% from 19.3%. The year-over-year growth of tirzepatide stands at an impressive 133%, significantly outpacing the 1.6 times supply expansion that Eli Lilly has forecasted.
Eli Lilly’s performance is a testament to the company’s strategic market positioning and the strength of its product offerings. The analysts’ reiterated rating and price target reflect confidence in Eli Lilly’s ability to maintain its growth trajectory and market leadership. With an "GOOD" Financial Health score from InvestingPro and a 55-year track record of maintaining dividend payments, the company’s stock continues to be seen favorably by Bernstein analysts, who expect further market share gains and robust growth for Eli Lilly in the future. Discover 12+ additional exclusive insights and detailed analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, Eli Lilly has been in the spotlight due to several developments. Goldman Sachs upgraded Eli Lilly’s stock rating from Neutral to Buy, citing the company’s strong position in the anti-obesity medication market and projecting significant revenue growth in this sector. The firm reduced its price target slightly to $888, highlighting Eli Lilly’s strategic approach and manufacturing capabilities as key factors in maintaining market leadership. Concurrently, Eli Lilly’s shares experienced a decline after the Trump administration decided not to proceed with a Medicare regulatory update that could have expanded coverage for obesity drugs, leaving the status of such coverage uncertain.
In related developments, Pfizer (NYSE:PFE) announced the discontinuation of its obesity drug candidate, danuglipron, due to potential drug-induced liver injury, which has led to increased interest in Eli Lilly and other competitors in the GLP-1 receptor agonist space. Additionally, the pharmaceutical sector is facing potential challenges as President Trump announced plans for major tariffs on the industry, which could impact global supply chains and profitability. Mehmet Oz’s confirmation as the new Administrator of the Centers for Medicare and Medicaid Services (CMS) adds another layer of complexity, as he will play a crucial role in deciding on Medicare coverage for new weight-loss drugs from companies like Eli Lilly. These recent developments reflect the dynamic nature of the pharmaceutical industry and the various factors influencing investor sentiment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.