Guggenheim Reiterates Buy Rating on Eli Lilly (LLY)

Guggenheim analyst Seamus Fernandez reiterated a Buy rating and $875.00 price target on Eli Lilly (NYSE: LLY).

The analyst commented: "We hosted a series of investor meetings with Lucas Montarce, EVP & CFO and Fadi Debes, SVP & CFO, Lilly International, in Boston and New York. Key takeaways include: (1) 2025 growth to date is strong and both seasonality and CVS formulary impacts are playing out as expected; (2) margins will continue to evolve, but expect 82-83% sustainable gross and no higher than 50% sustainable operating margins; (3) look for continued strong tirzepatide growth OUS as penetration into diabetes and self-pay obesity expands; (4) mgmt expects the orforglipron launch to further increase penetration in T2D, opening up global access further and accelerating obesity market penetration globally; orals are strongly preferred by PCPs, cardiologists, and internists, and several OUS markets (e.g., Japan, Spain, etc.) prefer orals overall; and (5) while macro uncertainty remains unpredictable, LLY is well-positioned to avoid tariffs having broken ground in several U.S. states, MFN remains a challenging discussion but implementation specifics remain a headwind, and while LLY is not directly involved, 2027 IRA price negotiations may be tougher this round to showcase a win for the administration- but secondary effects of price cuts to NOVO's sema are expected to be isolated to Medicare and not spread to commercial."

For an analyst ratings summary and ratings history on Eli Lilly click here. For more ratings news on Eli Lilly click here.

Shares of Eli Lilly closed at $724.54 yesterday.

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