Citi sees positive read-through to Lilly shares on FDA GLP-1 statement

Citi reiterated a Buy rating and $1,190 price target on Eli Lilly (LLY), saying the firm expects a positive read-through to the shares on FDA’s statement highlighting its concerns with compounded GLP-1s, including Lilly’s tirzepatide. The lack of safety, efficacy, and quality oversight are aspects the agency highlighted in its statement, the analyst tells investors in a research note, adding that the FDA also noted that Lilly’s retatrutide cannot be used in compounding. The firm believes the statement further closes the doors on compounders and highlights its belief that Lilly’s 2025 revenue guidance is conservative and achievable.