S&P 500 falls as traders turn sour on tech
Investing.com - Bernstein has reiterated its Outperform rating and $1,100.00 price target on Eli Lilly (NYSE:LLY) following the pharmaceutical company’s third-quarter earnings report. This target sits below the analyst high target of $1,190, according to InvestingPro data, with the overall analyst consensus maintaining a strong Buy recommendation at 1.76.
Eli Lilly reported its Q3 earnings on Thursday, delivering substantial beats on both revenue and earnings per share, which prompted the company to raise its full-year guidance. The market responded positively to the results, with Eli Lilly’s stock closing up 3.8% on the day of the announcement. The pharmaceutical giant has demonstrated impressive revenue growth of 45.41% over the last twelve months, with diluted earnings per share reaching $20.44.
Bernstein highlighted that Mounjaro’s launches outside the United States represent a significant upside potential that may be underappreciated by the market. Despite modeling conservative revenue growth projections for the end of the year, Bernstein’s full-year expectations for Eli Lilly remain $0.6 billion above the company’s guidance. InvestingPro data shows that six analysts have recently revised their earnings upwards for the upcoming period, suggesting growing confidence in the company’s outlook.
The firm noted that Eli Lilly’s incretin business continues to dominate its performance, while its pipeline remains robust. Bernstein specifically mentioned that Zepbound may experience seasonal slowing in Q4, which has been factored into their projections. With a market capitalization of $772.59 billion and an "GREAT" overall financial health score according to InvestingPro, Eli Lilly has established itself as a prominent player in the pharmaceuticals industry.
Despite the strong performance, Bernstein indicated that Eli Lilly’s stock may face near-term constraints as market attention focuses on the Orfo launch, WH deal, and semaglutide pricing risks, all of which are expected to resolve in the fourth quarter. Currently trading at a P/E ratio of 42.21, Eli Lilly appears slightly above its Fair Value based on InvestingPro analysis. Investors should note that the company has maintained dividend payments for 55 consecutive years, demonstrating remarkable stability. For deeper insights into Eli Lilly’s valuation and 12+ additional ProTips, explore the comprehensive Pro Research Report available exclusively to subscribers.
In other recent news, Eli Lilly reported impressive third-quarter 2025 earnings, significantly surpassing analyst expectations. The pharmaceutical company achieved non-GAAP earnings per share of $7.02, compared to the forecasted $5.89, representing a notable surprise. Eli Lilly’s total revenue reached approximately $17.6 billion, exceeding the consensus estimate of $16.1 billion. This strong financial performance has led Jefferies to raise its price target for Eli Lilly to $976 from $905, while maintaining a Buy rating. These developments indicate a positive outlook from analysts, reflecting confidence in the company’s financial health. The earnings and revenue results are crucial for investors as they assess Eli Lilly’s performance and future potential. These recent developments highlight Eli Lilly’s ability to outperform market expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.