Eli Lilly 'On Its Way' To $1 Trillion Market Cap, Analysts Say: It's A 'Have' In A Sea Of 'Have Nots'

Zinger Key Points
  • BofA Securities writes that while earnings beat and forecast raise is expected throughout 2024, the magnitude in Q1 impressed investors.
  • Despite the expected top-line miss due to incretin supply constraints, Eli Lilly's sales growth of 26% in 1Q24 is still impressive, analyst

Eli Lilly And Co LLY “could be on its way to becoming a $1 trillion market cap company,” according to analysts at Cantor Fitzgerald.

The assessment comes on the heels of an earnings report that shows first-quarter revenue of $8.77 billion. That’s up 26% year-over-year, just marginally missing the consensus of $8.92 billion.

The Indianapolis-based company saw increases of 16% in volume and 10% in higher realized prices.

Eli Lilly posted an adjusted EPS of $2.58, beating the consensus of $2.46, higher than $1.62 a year ago. Here’s how analysts reacted:

  • Cantor raised its price target from $815 to $885 with an Overweight rating, driven by earnings revisions. 
  • BofA reiterated the Buy rating with a price target of $1,000.
  • Truist maintains the Buy rating with a price target increased from $850 to $892.

Cantor: Despite the top-line miss that was widely anticipated due to supply constraints, Eli Lilly’s sales growth of 26% in Q1 2024 is still impressive, the analysts note. The industry average is mid-to-low single digits.

BofA Securities: While earnings beat and forecast raise is expected throughout 2024, the magnitude this early in the year impressed investors, particularly given recent questions on Lilly’s ability to manufacture enough supply for its incretin franchise.

With this backdrop, analysts highlight Lilly’s unparalleled growth profile and underscoring it’s a “have” in a sea of “have nots.”

Truist: The analyst notes that Mounjaro/Zepbound’s strong performance drove solid first-quarter revenues, and underlying demand seems healthy.

Truist sees progress made to address manufacturing constraints, which remain at the top of mind given that demand is expected to exceed supply throughout 2024.

Price Action: Eli Lilly shares are down 0.14% at $779.98 at the last check Wednesday.

Read Next: Eli Lilly’s Famed Weight Loss Drug Zepbound Works As Sleep Apnea Treatment, Successful Late-Stage Studies Show.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: Analyst ColorBiotechEarningsLarge CapNewsHealth CarePrice TargetTop StoriesAnalyst RatingsGeneralBiopharmaBriefsExpert IdeasStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!