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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.
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