Eli Lilly stock price target lowered to $895 by UBS on orfo data concerns

Published 08/08/2025, 14:00
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Investing.com - UBS lowered its price target on Eli Lilly (NYSE:LLY) to $895 from $1,050 while maintaining a Buy rating, citing concerns over orfo Phase 3 data that overshadowed strong quarterly performance. According to InvestingPro data, 8 analysts have recently revised their earnings upwards for the upcoming period, with analyst targets ranging from $650 to $1,190.

The stock traded down as much as 15% following the news, partly due to unwinding of a crowded trade heading into the quarter, though UBS views the market reaction as excessive. InvestingPro analysis shows the stock’s RSI indicates oversold territory, while the company maintains a strong financial health score of GOOD.

Eli Lilly reported second-quarter 2025 results showing Zepbound and Mounjaro sales exceeded expectations by 12% and 10% respectively, with international markets providing significant momentum.

Based on current new prescription trends, UBS expects GLP-1 momentum to remain strong in the third quarter of 2025, with concerns about CVS switching appearing overly conservative.

Eli Lilly has raised its 2025 guidance to $60.0-62.0 billion from $58.0-61.0 billion, with operating margins now projected at 43.0-44.5%, representing a 125 basis point expansion at the midpoint compared to the company’s longer-term guidance.

In other recent news, Eli Lilly reported its second-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $6.31, compared to the forecasted $5.59. The company’s revenue also exceeded predictions, reaching $15.56 billion against the expected $14.67 billion. Despite these strong financial results, broader market conditions and investor sentiment led to a decline in the stock’s pre-market trading. In another development, Jefferies lowered its price target for Eli Lilly to $905.00 from $1,057.00, maintaining a Buy rating. This adjustment followed disappointing clinical trial results for Eli Lilly’s obesity drug orforglipron, which showed an 11.2% absolute weight loss at the 36 mg dose. Meanwhile, Morgan Stanley (NYSE:MS) reiterated its Overweight rating on Eli Lilly, with a price target of $1,135.00. The firm highlighted the expanding market for GLP-1 medications, projecting a peak obesity market of about $150 billion. These developments reflect the varied analyst perspectives on Eli Lilly’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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