Eli Lilly & Co (LLY – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on April 4. Analyst Tim Anderson from Bank of America Securities maintained a Buy rating on the stock and has a $1,000.00 price target.
Tim Anderson has given his Buy rating due to a combination of factors related to Eli Lilly & Co’s potential growth prospects. Despite the recent CMS decision not to include obesity coverage in the 2026 Medicare ruling, Anderson believes that broad coverage will eventually be implemented. This expectation is based on the likelihood of the Treat and Reduce Obesity Act being reintroduced in 2025, which could lead to expanded coverage for obesity treatments.
Furthermore, Anderson highlights that a significant portion of Medicare patients already have obesity coverage due to existing comorbidities, which suggests that the impact of future coverage expansion could be substantial. With over 100 million adults in the US affected by obesity, the potential market for Eli Lilly’s obesity treatments remains large. Consequently, Anderson maintains a positive outlook on the company’s stock, with a price objective set at $1,000, reflecting confidence in Eli Lilly’s long-term growth potential.
In another report released on April 2, TD Cowen also maintained a Buy rating on the stock with a $1,050.00 price target.
Based on the recent corporate insider activity of 140 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LLY in relation to earlier this year.