BofA sees more upside in Eli Lilly stock

Eli Lilly’s first-quarter study gave Wall Street different crushed to enactment optimistic astir 1 of the market’s biggest pharmaceutical winners, adjacent arsenic analysts proceed to measurement however overmuch maturation is already priced into the stock.

Bank of America reiterated its Buy standing connected Eli Lilly and acceptable a $1,133 terms nonsubjective connected the stock, according to a study fixed to TheStreet. That people was lowered from $1,294, but inactive implied astir 21% upside from the stock terms listed successful the firm’s report.

The update captured the main statement astir Eli Lilly. The institution continues to station beardown results down its diabetes and obesity treatments, portion investors are inactive trying to gauge however durable GLP-1 pricing and marketplace stock tin beryllium implicit the adjacent respective years.

BofA said Eli Lilly delivered a “solid” archetypal quarter, with income and net per stock beating statement expectations by 11% and 24%, respectively. The institution besides raised its fiscal 2026 income guidance by 2.5%, with the steadfast pointing to continued spot successful GLP-1 request extracurricular the U.S.

BofA says Eli Lilly’s obesity ramp remains beardown

The largest operator of BofA’s bullish presumption remains Eli Lilly’s presumption successful the fast-growing obesity market, wherever the steadfast sees the institution holding a beardown competitory presumption for years.

According to the study fixed to TheStreet, BofA said Lilly’s GLP-1 ramp extracurricular the U.S. continues to transcend some its ain expectations and Wall Street’s. The steadfast pointed to Mounjaro’s show extracurricular the U.S. arsenic different beardown portion of the quarter, portion besides noting that prescriptions for Lilly’s oral GLP-1, Foundayou, were opening to prime up.

BofA said 1 of the cardinal takeaways from the 4th was that oral GLP-1 drugs bash not look to beryllium cannibalizing injectables. That is an important portion of the firm’s semipermanent view, due to the fact that Lilly’s accidental depends connected expanding the marketplace without meaningfully undercutting request for its existing products.

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The steadfast besides highlighted aboriginal commercialized details from Lilly’s league call, including management’s remark that Foundayou had much than 20,000 treated patients done its archetypal 3.5 weeks. BofA noted that Lilly expects entree from 2 of 3 large pharmacy payment managers by mid-May, with Medicare Part D entree expected later.

Mounjaro besides remained a large focus. BofA said the cause continues to way astir 75% chronic value absorption compared with benignant 2 diabetes, portion maturation extracurricular the U.S. has remained coagulated crossed respective cardinal markets, including Brazil, the U.K., China, and Korea.