Eli Lilly stock outlook positive as JPMorgan sees Mounjaro upside

Published 07/07/2025, 15:32
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Investing.com - JPMorgan has reiterated an Overweight rating and $1,100.00 price target on Eli Lilly (NYSE:LLY) ahead of the company’s second-quarter earnings report scheduled for August 7. According to InvestingPro data, analysts’ price targets for LLY range from $650 to $1,190, with the stock currently trading near Fair Value levels.

The investment bank expects Eli Lilly to deliver solid second-quarter results, with potential upside from its Mounjaro and Zepbound products based on strong prescription growth trends. The company has demonstrated strong performance with a 36.4% revenue growth over the last twelve months and maintains an impressive 81.7% gross profit margin.

JPMorgan forecasts total quarterly sales of $14.8 billion, approximately $370 million above consensus estimates, driven primarily by the strong performance of the company’s weight loss and diabetes medications.

On earnings per share, the firm’s estimate of $5.49 sits slightly below consensus by $0.06, as analysts anticipate continued operational expense increases to support Eli Lilly’s growing late-stage pipeline and direct-to-consumer marketing initiatives.

The maintained Overweight rating suggests JPMorgan remains confident in Eli Lilly’s long-term growth prospects despite the expected higher operational expenses in the near term.

In other recent news, Eli Lilly has announced a quarterly dividend of $1.50 per share for the third quarter of 2025, payable on September 10 to shareholders of record by August 15. UBS has maintained its buy rating for Eli Lilly, highlighting the company’s strong position in the obesity treatment market and anticipating quarterly sales to exceed consensus by 2%. Additionally, UBS notes a potential $50 million sales boost in the second quarter due to patients obtaining supplies of Zepbound ahead of a formulary change. In a strategic move, Eli Lilly has entered into a definitive agreement to acquire Verve Therapeutics for up to $1.3 billion, a deal expected to close by the third quarter of 2025. BMO Capital downgraded Verve Therapeutics to Market Perform following the acquisition announcement. Meanwhile, Evercore ISI maintains an In Line rating on Eli Lilly after positive results from a clinical trial for bimagrumab, a non-GLP weight loss treatment. BMO Capital continues to rate Eli Lilly as Outperform, citing advancements in its metabolic portfolio, including developments in oral GLP-1 assets and a promising oral triple G agonist.

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