Eli Lilly and Company

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Bullish +75

Guggenheim Boosts Eli Lilly Price Target Amid Strong Weight Loss Drug Demand

AI-generated analysis

πŸ“ˆ Guggenheim raised its LLY price target to $1,284 from $1,273 while maintaining a Buy rating due to strong weight-loss drug demand.

πŸ’Š Zepbound is set to return to CVS's formulary starting October 1, supporting continued growth in the U.S. tirzepatide business.

πŸš€ Foundayo revenue estimates were raised to $1.8 billion for 2027 and $3.7 billion for 2028 reflecting an improving launch trajectory.

πŸ’° Guggenheim's 2026 revenue estimate of $89.2 billion exceeds Lilly's guidance range of $85-87 billion and the Street consensus.

πŸ”¬ Analysts are optimistic about retatrutide and eloralintide potential at the upcoming EASD meeting to be combined with tirzepatide.

πŸ“Š Berenberg upgraded LLY from Hold to Buy with a $1,400 price target citing strong returns on investment in the obesity market.

πŸ’Ό BMO Capital reiterated an Outperform rating with a $1,400 target expecting Foundayo's type 2 diabetes approval to drive revenue.

πŸ“ˆ Foundayo generated approximately $100 million in sales during Q2 of 2026 demonstrating early commercial traction.

🀝 Lilly announced a partnership with Twist Bioscience to strengthen its AI drug discovery platform, TuneLab.

🧬 Twist will provide antibody characterization data services to help speed up development for Lilly's pipeline.

Bullish Signals
  • Guggenheim raised its price target to $1,284 from $1,273 and maintained a Buy rating based on strong prescription trends for Mounjaro and Zepbound.
  • Zepbound will return to CVS's formulary starting October 1, providing a clear catalyst for continued growth in the U.S. tirzepatide business.
  • Guggenheim raised its Foundayo revenue estimate to $3.7 billion for 2028 from $2.4 billion due to an improving launch trajectory.
  • The firm's 2026 revenue estimate of $89.2 billion beats Lilly's guidance range of $85-87 billion and the Street consensus of $88.3 billion.
  • Berenberg upgraded LLY from Hold to Buy with a $1,400 price target citing strong returns on investment in the obesity treatment market.
  • BMO Capital reiterated an Outperform rating with a $1,400 target expecting Foundayo's approval in type 2 diabetes to add further revenue growth.
  • Foundayo has already brought in roughly $100 million in sales during Q2 of 2026, validating early commercial success.
  • Lilly is partnering with Twist Bioscience to enhance its AI and machine learning drug discovery platform, TuneLab, for faster development.
Full Analysis
Guggenheim Capital has raised its price target for Eli Lilly (LLY) to $1,284 from $1,273 while maintaining a Buy rating, driven by strong demand for the company's weight-loss portfolio. The firm updated its financial model based on prescription trends and confirmed that Zepbound will return to CVS's formulary starting October 1, reinforcing expectations for sustained growth in the U.S. tirzepatide business which includes both Mounjaro and Zepbound. Analysts at Guggenheim project continued expansion for Lilly's oral diabetes drug, Foundayo, with revenue estimates rising significantly from $1.2 billion in 2027 to $3.7 billion in 2028. This upward revision reflects an improving launch trajectory, while the firm's 2026 revenue estimate of $89.2 billion exceeds both Lilly's own guidance range and the broader Street consensus. The bullish sentiment is echoed by other major institutions including Berenberg, which upgraded LLY to Buy with a $1,400 target citing strong investment returns, and BMO Capital, which reiterated an Outperform rating anticipating further revenue growth from Foundayo's approval in type 2 diabetes. The market appears confident that Lilly's metabolic health portfolio retains substantial room for growth despite recent valuation increases. Beyond drug sales, Eli Lilly is strengthening its innovation pipeline through a strategic partnership with Twist Bioscience to enhance its AI and machine learning drug discovery platform, TuneLab. This collaboration aims to accelerate development by integrating antibody characterization data services, further solidifying the company's position in metabolic health research and potential future product launches.