Cantor Fitzgerald sets Eli Lilly stock to Overweight, $975 target

Published 22/04/2025, 13:24
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Tuesday, Cantor Fitzgerald initiated coverage on Eli Lilly (NYSE:LLY) shares with an Overweight rating and a price target of $975. The firm’s analysts highlighted Eli Lilly’s strong start to the year, driven by positive clinical data and robust commercial performance in its GLP-1 product line. The pharmaceutical giant, with a market capitalization of $734.57 billion, has demonstrated impressive momentum, posting an 8.04% return in the past week. According to InvestingPro data, Eli Lilly maintains a "GREAT" overall financial health score, reflecting its strong market position.

Eli Lilly’s recent success, according to Cantor Fitzgerald, is marked by its orforglipron ACHIEVE-1 trial results and a significant uptick in total prescriptions for its diabetes drug, Zepbound, which have surpassed those of competitor Wegovy. Additionally, the continued momentum of Mounjaro, another of Eli Lilly’s treatments, was noted, with its total prescriptions increasing by 11% quarter over quarter, nearing the levels of Ozempic, a competing drug. This success is reflected in the company’s impressive 32% revenue growth over the last twelve months, with gross profit margins exceeding 81%.

The analysts mentioned that Eli Lilly has not faced significant supply issues in recent months, pointing out that the FDA’s shortage list has been resolved and that issues surrounding drug compounding are diminishing. Looking ahead, Cantor Fitzgerald anticipates that the upcoming ATTAIN-1/2 trial results in the third quarter will be positive, further solidifying Eli Lilly’s position in the market.

Cantor Fitzgerald’s analysts expressed confidence in Eli Lilly’s potential to dominate the obesity market, projecting an 85% or greater market share by the 2029-2030 period, in anticipation of new market entrants. The firm’s price target is based on a 30 times multiple of their estimated 2026 earnings per share for Eli Lilly, which is $32.40. The analysts concluded that given these factors, the $975 price target for Eli Lilly’s stock is not controversial. Based on InvestingPro’s comprehensive analysis, which includes over 30 financial metrics and exclusive ProTips, Eli Lilly appears to be trading above its Fair Value. Discover detailed valuation insights and access the full Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Eli Lilly has reported promising results from its Phase 3 ACHIEVE-1 trial for orforglipron, an innovative oral medication for type 2 diabetes. The trial demonstrated significant reductions in A1C levels and weight among participants, with over 65% achieving an A1C level of 6.5% or lower, which is the target set by the American Diabetes Association. The results have sparked optimism about the drug’s potential, with Eli Lilly planning to present these findings at the upcoming American Diabetes Association conference. Meanwhile, BMO Capital Markets adjusted its price target for Eli Lilly to $900, maintaining an Outperform rating, citing strong prescription growth for its drugs Mounjaro and Zepbound. Despite the price target reduction, BMO emphasized confidence in Lilly’s incretin portfolio, though broader macroeconomic factors influenced the adjustment. Leerink Partners also reiterated an Outperform rating with a $989 price target, expressing confidence in the drug’s approval prospects by 2026. Eli Lilly is preparing for a global launch of orforglipron, with plans to submit regulatory filings for weight management by the end of 2025 and for type 2 diabetes treatment in 2026. The company is committed to addressing chronic diseases like type 2 diabetes, projected to affect 760 million adults by 2050.

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