BofA Securities reiterates Buy rating on Eli Lilly stock with $900 target

Investing.com - BofA Securities has reiterated its Buy rating on Eli Lilly (NYSE:LLY) with a price target of $900.00, citing the company’s exceptional growth potential compared to industry peers. According to InvestingPro data, LLY has demonstrated strong momentum with revenue growth of 36.83% over the last twelve months, while maintaining a GOOD overall financial health score.

The investment firm highlighted Eli Lilly’s projected revenue growth of approximately 35% in 2025, which significantly outpaces the pharmaceutical industry average of 4% across U.S. and European companies.

BofA Securities noted that Eli Lilly’s growth rate is four times higher than the next best performers in the sector, which are growing at 9%, while trading at a price-to-earnings ratio for 2026 that is only twice as high.

Despite acknowledging "binary event risk" that makes the stock potentially volatile, BofA Securities stated that Eli Lilly "undisputably remains in pole position in obesity," a key growth area for the company.

The firm indicated it views Eli Lilly’s valuation as "still reasonable" given the company’s growth profile and market positioning, though it cautioned the stock is "not for the faint at heart."

In other recent news, Eli Lilly announced positive results from its Phase 3 trial of the oral GLP-1 drug, orforglipron. The ATTAIN-2 trial revealed that participants taking the highest dose lost an average of 22.9 pounds over 72 weeks, significantly outperforming the placebo group. This success paves the way for global regulatory submissions later this year. Additionally, Eli Lilly entered a clinical supply agreement with Immuneering Corp for the KRAS G12C inhibitor, olomorasib, to be used in a planned Phase 2 trial. This study will focus on patients with advanced non-small cell lung cancer. In leadership news, Eli Lilly announced that Anne White, head of neuroscience, will retire at the end of 2025 after a 30-year tenure. The company is currently searching for her successor. These developments highlight Eli Lilly’s ongoing advancements in drug development and leadership transitions.

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