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Investing.com - Citi has reiterated its Buy rating on Eli Lilly (NYSE:LLY) with a price target of $1,190.00, citing strong potential for the company’s obesity treatment pipeline. According to InvestingPro data, Eli Lilly currently shows strong financial health with a robust 42% return on equity and impressive revenue growth of 28% year-over-year.
The research firm highlighted how Eli Lilly and Novo have successfully repositioned obesity as a treatable medical condition rather than merely a lifestyle issue. Citi projects that Lilly’s oral obesity treatment orforglipron, expected to launch in 2026, could generate over $40 billion in sales by 2030, significantly higher than the Bloomberg consensus estimate of approximately $25 billion. The company’s strong market position is reflected in its impressive gross profit margin of 77% and operating margin of 29%, according to recent financial data.
Citi believes the obesity treatment market will evolve from injectable medications to more convenient oral options like orforglipron, potentially creating a consumer-centric market. The firm specifically noted that Lilly’s direct-to-consumer platform, LillyDirect, is well-positioned to connect consumers with orforglipron while addressing global access challenges.
The analysis identifies a potential $15 billion opportunity through the consumer platform, which Citi says is not currently factored into its financial models. The research firm suggested Lilly could accelerate international access by implementing a centralized out-of-pocket payment model instead of traditional country-by-country launches.
Citi maintains its bullish outlook on Eli Lilly and orforglipron following the American Diabetes Association conference, reaffirming both its Buy rating and $1,190 price target. Want deeper insights into Eli Lilly’s financial health and growth prospects? InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analyst insights.
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