Eli Lilly Seen In 'Pole Position' For Growth, Analysts Say

Core Insights - Eli Lilly and Co. reported better-than-expected third-quarter earnings, with quarterly revenue of $17.60 billion, a 54% year-over-year increase, surpassing the consensus of $16.02 billion [1] - The adjusted earnings per share reached $7.02, significantly up from $1.18 a year ago, and exceeded the consensus estimate of $5.70 [2] Financial Performance - Revenue growth was driven by a 62% increase in volume, although partially offset by a 10% decrease due to lower realized prices [1] - The company's implied FY25 guidance is between $63.0 billion and $63.5 billion, indicating a potential sequential decline in outside U.S. Mounjaro revenue of $3 billion from the third quarter [4] Analyst Perspectives - Goldman Sachs views Eli Lilly as well-positioned for the launch of orforglipron, a significant new product cycle, maintaining a Buy rating and raising the price forecast from $879 to $951 [3] - BofA Securities also rates Eli Lilly as Buy, citing its durable growth potential compared to peers and a strong catalyst path at a reasonable valuation [5] Competitive Landscape - Eli Lilly is focused on defending and expanding its lead in the obesity treatment market, with a broad portfolio of current and emerging treatments [5] - Despite expected competition, analysts express confidence in Eli Lilly's innovative capabilities and execution, noting that the company remains highly scaled [7] Stock Performance - Eli Lilly shares increased by 2.39% to $864.70 at the time of publication [7]