Shares of the pharmaceutical company Eli Lilly (NYSE:LLY) are trending higher, rising more than 88% over the past year. Further, LLY stock crafted a new 52-week high of $608.79 on October 11. The significant appreciation in its value reflects the massive growth opportunity stemming from its diabetes and obesity products. This makes Wells Fargo analyst Mohit Bansal believe that Eli Lilly could become the first trillion-dollar bio-pharma company. Currently, it has a market cap of about $575 billion.
Investors should note that in May 2022, the U.S. FDA (Food and Drug Administration) approved Eli Lilly’s Mounjaro for treating type 2 diabetes in adult patients. Since then, the company has benefitted from the strong momentum of Mounjaro. Impressively, in Q2, Mounjaro’s revenue reached $960 million in the U.S. This number is expected to grow substantially as Mounjaro has shown positive results in significantly reducing weight.
Mounjaro, till now, has only been approved for treating type 2 diabetes. However, Bank of America Securities analyst Geoff Meacham expects Mounjaro to get the FDA’s approval for treating obesity in the fourth quarter. Mounjaro will compete with Novo Nordisk’s (NYSE:NVO)(DE:NOVC) obesity drug Wegovy, which witnessed stellar demand soon after its launch in the U.S. Meacham increased LLY’s price target to the Street high of $700 from $600 and maintained a Buy rating on October 6.
Echoing similar sentiments, Bansal increased Eli Lilly’s price target to $650 from $615 and reiterated a Buy on October 9. The analyst sees a massive market opportunity for its obesity-related drug. As Meacham and Bansal are bullish about LLY’s prospects, let’s look at the Street’s consensus rating on the stock.
What is the Prediction for Eli Lilly Stock?
Wall Street analysts are optimistic about Eli Lilly stock. With 16 Buy and one Hold recommendations, Eli Lilly stock sports a Strong Buy consensus rating on TipRanks. However, due to the recent growth in its price, analysts’ average price target of $603.81 is roughly in line with its closing price on October 11.
