Eli Lilly and Company (NYSE: LLY) is seeing an optimistic outlook from financial analysts, with Truist Financial raising its price target for the stock from $1,038.00 to $1,182.00. This increase, announced on Wednesday, suggests a potential upside of 13.59% from its current trading price. The brokerage has maintained a “buy” rating for the shares, reflecting confidence in the company’s future performance.
In addition to Truist Financial, several other financial institutions have weighed in on Eli Lilly’s stock. On August 14, DZ Bank upgraded its rating from “hold” to “strong-buy,” indicating a more favorable view of the company’s prospects. Similarly, on October 16, Guggenheim reaffirmed its “buy” rating and set a price target of $948.00. Meanwhile, JPMorgan Chase & Co. raised its price objective from $1,050.00 to $1,150.00 and assigned an “overweight” rating in a report published on Tuesday.
As of now, three analysts have rated Eli Lilly as a “strong buy,” while fifteen have given it a “buy” rating and seven have categorized it as a “hold.” According to MarketBeat.com, the consensus rating for Eli Lilly stands at “Moderate Buy,” with an average target price of $1,027.95.
Strong Earnings Report Boosts Confidence
Eli Lilly recently announced its quarterly earnings on October 30, 2023, revealing an earnings per share (EPS) of $7.02. This figure surpassed analysts’ expectations of $6.42 by $0.60. The company achieved a remarkable return on equity of 92.72% and a net margin of 25.91%. During the quarter, Eli Lilly generated revenues of $17.60 billion, significantly exceeding the anticipated $16.09 billion. This represents an impressive 53.9% increase in revenue compared to the same period last year, when the firm reported an EPS of $1.18.
Looking ahead, Eli Lilly has provided guidance for fiscal year 2025, projecting an EPS between $23.000 and $23.700. Analysts predict the company will report an average EPS of $23.48 for the current fiscal year.
Institutional Investment Trends
Recent activity from institutional investors indicates a growing interest in Eli Lilly. Several firms have initiated new positions or increased their stakes in the company. Wealth Preservation Advisors LLC, for instance, acquired shares valued at $27,000 in the first quarter. Similarly, Sumitomo Mitsui Financial Group and Evolution Wealth Management both purchased new stakes during the second quarter, each valued around $27,000 and $29,000 respectively.
Steph & Co. significantly increased its holdings in Eli Lilly by 290.0% during the third quarter, now owning 39 shares valued at $30,000 after acquiring additional shares. Overall, institutional investors and hedge funds hold approximately 82.53% of Eli Lilly’s stock, reflecting strong institutional confidence in the company’s future.
Founded in 1876, Eli Lilly and Company is a global leader in the discovery, development, and marketing of pharmaceuticals. The company specializes in treatments for diabetes, obesity, and other health conditions, offering a range of products including Basaglar, Humalog, and Jardiance.
As Eli Lilly navigates the evolving pharmaceutical landscape, the increased analyst ratings and robust financial performance suggest a promising trajectory for the company and its shareholders.
