UBS maintains Buy on Eli Lilly stock, price target at $1,050

Tuesday, Eli Lilly and Company (NYSE:LLY) stock maintained its Buy rating and a price target of $1,050.00, as reiterated by UBS analysts. According to InvestingPro data, the pharmaceutical giant, currently trading at $773.71, appears overvalued based on its Fair Value analysis. The company boasts impressive financials with a revenue growth of 36.4% and maintains a strong market position with a market capitalization of $694.6 billion. The focus of their latest social media channel check series, which previously covered retatrutide and orforglipron, has shifted to patient feedback regarding the upcoming CVS formulary change. This change, effective July 1, 2025, will see CVS prefer Wegovy over Zepbound. With an impressive gross profit margin of 81.7% and robust financial health score rated as "GREAT" by InvestingPro, Eli Lilly appears well-positioned to navigate market changes.

UBS analysts have been examining social media for patient insights on Eli Lilly’s products. While acknowledging the potential for responder bias, the analysts have compiled a selection of public, yet unconfirmed comments. These comments offer a view into patient experiences and preparations in anticipation of the formulary switch at CVS.

The analysts underscored the importance of considering these social media observations as they offer a different lens through which to assess patient sentiment and market dynamics. This alternative perspective is seen as a supplement to traditional data.

The CVS formulary change could have implications for Eli Lilly, as it may affect how their product Zepbound is perceived and prescribed relative to Wegovy. The analysts’ continued endorsement of Eli Lilly’s stock suggests a positive outlook on the company’s performance despite potential market shifts.

Eli Lilly’s stock response to the UBS rating and price target reiteration will be watched closely by investors, especially in the context of the upcoming formulary change. The firm’s research, which includes unconventional methods like social media analysis, provides a nuanced understanding of the pharmaceutical landscape Eli Lilly operates within. InvestingPro subscribers can access 13 additional exclusive tips about LLY, including detailed insights about its dividend history, which shows 55 consecutive years of payments, and comprehensive analysis through the Pro Research Report, available for over 1,400 US stocks.

In other recent news, Eli Lilly reported positive Phase 1 results for its investigational drug LY4170156, aimed at treating advanced ovarian cancer. The study, involving 95 participants, showed a preliminary overall objective response rate of 55% at the suggested Phase 2 dose, with a disease control rate of 74%. Eli Lilly plans to advance this drug into Phase 3 clinical trials, as announced by Chief Medical (TASE:BLWV) Officer Dr. David Hyman. Additionally, UBS has maintained its Buy rating and $1,050 price target for Eli Lilly, emphasizing the potential impact of the upcoming Phase 3 SURPASS-CVOT trial results. This trial is pivotal as it compares the diabetes drug Mounjaro to Trulicity, with significant implications for Eli Lilly’s positioning in the type 2 diabetes treatment landscape.

Meanwhile, TD Cowen adjusted its price target for Eli Lilly shares to $960, down from $1,050, while maintaining a Buy rating. This adjustment reflects updated earnings projections and investor focus on the SURPASS-CVOT trial. Erste Group also downgraded Eli Lilly from a Buy to a Hold rating, citing concerns over the company’s revised earnings projections for 2025. Despite these adjustments, Eli Lilly’s robust drug pipeline and market demand remain strong. These developments indicate ongoing interest and scrutiny from analysts and investors as the company navigates its future prospects.

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