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Investing.com - JPMorgan has reiterated its Overweight rating on Eli Lilly (NYSE:LLY) with a price target of $1,100.00 following the company’s second-quarter results. The pharmaceutical giant, which has seen its stock decline nearly 16% in the past week according to InvestingPro data, maintains strong fundamentals with an impressive 81.7% gross profit margin.
The investment bank maintained its positive stance on the pharmaceutical company despite recent market concerns regarding clinical trial data for orforglipron, Eli Lilly’s oral obesity treatment candidate. This aligns with the broader analyst consensus, as InvestingPro data shows 8 analysts have recently revised their earnings estimates upward.
JPMorgan views the recent weakness in Eli Lilly’s stock related to Phase 3 obesity data for orforglipron as overdone, noting that efficacy results came in only "modestly lower than anticipated."
The firm specifically pointed out that the efficacy was approximately 1-2 percentage points lower than expected, which translates to about 2-4 pounds in weight loss.
Despite this slight underperformance in trial results, JPMorgan believes the use case for orforglipron remains "largely unchanged" and continues to anticipate a significant ramp-up in the second half of 2026 and beyond.
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 anticipated $14.67 billion. Despite these strong financial results, investor sentiment was impacted by broader market conditions. UBS has lowered its price target for Eli Lilly to $895 from $1,050, maintaining a Buy rating due to concerns over Phase 3 data for the drug orforglipron. Jefferies also adjusted its price target to $905 from $1,057, following disappointing results from the ATTAIN-1 obesity trial. Meanwhile, Morgan Stanley (NYSE:MS) reiterated its Overweight rating and maintained a price target of $1,135, highlighting the growth potential in the GLP-1 market. The firm suggests the market is expanding beyond early adopters in the U.S. to larger global populations. These developments reflect a mix of optimism and caution among analysts regarding Eli Lilly’s future prospects.
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