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Eli Lilly shares target raised on Zepbound sales potential

EditorNatashya Angelica
Published 30/04/2024, 19:26
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On Tuesday, Eli Lilly and Company (NYSE:LLY) saw its stock price target increased by Cantor Fitzgerald from the previous $815.00 to $885.00, while the firm maintained an Overweight rating on the stock. The adjustment comes after Eli Lilly reported strong revenue figures for its drug Zepbound in the United States, with sales reaching $517 million compared to the $363 million anticipated by FactSet for the first quarter of 2024.

Zepbound has shown remarkable performance, achieving an annualized rate of over $2 billion in sales in its first complete quarter since launch. This robust start suggests the potential for the drug to generate tens of billions in sales, indicating that forecasts for Zepbound, which are already optimistic, might see further increases.

The analyst noted that Eli Lilly's recent success with Zepbound could be just the beginning. The company is expected to continue its growth trajectory, supported by other significant drugs and new indications in its pipeline. The positive outlook on Zepbound's sales performance and the anticipated growth from other pipeline products contribute to the firm's confidence in Eli Lilly's future financial performance.

Investors and market watchers are keeping a close eye on Eli Lilly's stock as the pharmaceutical giant demonstrates its ability to exceed expectations and deliver growth through its innovative treatments. The raised price target reflects the potential that analysts see in the company's current and upcoming products.

InvestingPro Insights

In the wake of the positive developments surrounding Eli Lilly (NYSE:LLY), InvestingPro data shows a robust financial landscape for the company. With a substantial market capitalization of $703.41 billion and a noteworthy revenue growth of 19.56% over the last twelve months as of Q1 2023, Eli Lilly stands out in the pharmaceutical industry. The company's gross profit margin during the same period was an impressive 79.25%, underscoring its efficiency in generating income from sales.

InvestingPro Tips highlight Eli Lilly's consistent financial practices, such as maintaining dividend payments for 54 consecutive years and raising its dividend for 9 consecutive years, showcasing the company's commitment to shareholder returns.

Moreover, the company's stock has experienced a high return over the last year, with a 87.79% price total return, reflecting investor confidence and market performance. These insights, along with more tips available on InvestingPro, suggest a strong financial standing and potential for continued growth. Interested readers can find additional InvestingPro Tips for Eli Lilly at https://www.investing.com/pro/LLY and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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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