Eli Lilly's Stock Sees Moderate Bullish Sentiment from Analysts Amid Strong Patents and Market Growth
Eli Lilly's stock has had an impressive run over the past few years, up 410% in five years and 58% in the last year. However, its performance this year is more modest, with a 10.1% gain compared to the S&P 500's 12.5%. Analysts believe that the deceleration in the stock's climb is due to its run-up over the past few years, making it expensive at around 40 times trailing earnings.
The company has seen success with its tirzepatide drug, which surpassed Merck's Keytruda as the top-selling drug worldwide in Q3 2025. Tirzepatide is sold under the brand names Mounjaro and Zepbound for type 2 diabetes and weight loss, respectively.
The market for GLP-1 drugs is projected to soar to $190 billion by 2045, with Morgan Stanley increasing its forecast by $40 billion due to the launch of oral therapies and expanded Medicare coverage. Wall Street analysts are moderately bullish on Eli Lilly's stock, with an average price target of $1,325, which is about 11% above the current price.
Some analysts, like HSBC, are more bearish, with a target of $940 and a rating of 'reduce'. Others, such as Citigroup, are more bullish, with a target of $1,600. Eli Lilly's strong patents for tirzepatide extend into the late 2030s, providing some security in the market.