Eli Lilly Stock Surges on Demand for Weight-Loss Drugs

Core Viewpoint - Eli Lilly's stock surged over 5% following strong Q1 earnings and an increased full-year outlook, despite mixed results compared to analysts' expectations [1][3]. Financial Performance - For Q1, Eli Lilly reported a revenue increase of 26% year-over-year, reaching $8.8 billion, while earnings per share (EPS) rose by 59.3% to $2.58 [1]. - Analysts had anticipated revenue of $8.9 billion and EPS of $2.46, indicating that the actual revenue fell slightly short of expectations [3]. Full-Year Outlook - Eli Lilly raised its full-year revenue forecast to between $42.4 billion and $43.6 billion, and EPS expectations to between $13.50 and $14.00, up from previous estimates of $40.4 billion to $41.6 billion in revenue and $12.20 to $12.70 in EPS [3]. Market Sentiment - Analysts maintain a bullish outlook on Eli Lilly, with a consensus target price of $813.32, suggesting an upside of just over 5% from current levels, and a consensus recommendation of "Buy" [5]. - However, some analysts, like Damien Conover from Morningstar, believe the stock is overvalued, with a long-term fair value estimate of $500, indicating a potential downside of over 35% from current levels [5]. Strategic Initiatives - Eli Lilly is investing in pipeline development and expanding manufacturing capacity to increase the availability of its incretin medicines to more patients [4].