Bank of America is standing by its bullish outlook on Eli Lilly . The bank reiterated its buy rating on the pharmaceutical stock. It also hiked its price target to $1,286 from $950, which points to 22% upside. Analyst Tim Anderson applauded Eli Lilly for maintaining its “first place” status in the large obesity and diabetes market with its GLP-1 drugs, Zepbound and Mounjaro. LLY YTD mountain LLY YTD chart “While the obesity category is complex, with many moving parts, we continue to see LLY as remaining solidly in the lead that should continue to drive outsized growth for many years to come, at a valuation that is reasonable given this context,” he wrote. He also highlighted the company’s promising drugs pipeline. Anderson believes Eli Lilly will launch its new oral medication orforglipron in early 2026 versus previous expectations of late 2026, which lifts his revenue and earnings estimates for the upcoming year. “The company is nearing the launch of a closely watched, new, oral GLP1 (orforglipron) on an accelerated basis (guides for March 2026) as it was awarded one of the FDA’s first Commissioner’s National Priority Vouchers,” he said. “At the same time, it is pushing through a broad phase 3 development program with its high-potency product, retatrutide (aka ‘triple G’), with first results likely coming around year-end.” Another bullish catalyst, Anderson said, are rising valuations across the large-cap biopharma sector. This, he said, is partially due to the market’s re-embrace of the sector as the Trump administration’s healthcare policy priorities have become clearer. Shares of Eli Lilly have climbed 37% this year.
Bank of America hikes Eli Lilly price target on promising drug pipeline