Eli Lilly and Company Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Eli Lilly and Company (LLY).
Give me a comprehensive price target analysis for Eli Lilly and Company (LLY).
Price Targets Line Drawn Extending 30 Days into the Future
- Low Price Target ($650): drawn in red
- Median Price Target ($876): drawn in green
- High Price Target ($1190): drawn in blue
Executive Summary
Eli Lilly (LLY) exhibits a compelling long-term growth outlook supported by strong fundamentals, positive earnings trends, and favorable technical signals. The current stock price of ~$710 suggests potential upside towards the median and high price targets over the coming years, with substantial analyst consensus backing long-term appreciation driven by innovation in pharmaceuticals and expanding pipeline.
Fundamental Analysis
| Metric | Value | Notes |
|---|---|---|
| Market Cap | ~$636B | Large-cap, indicating stability and scale |
| P/E (Trailing) | 46.36 | High, reflecting growth expectations |
| P/B | 34.84 | Premium valuation, typical for biotech/pharma |
| Return on Equity | 86.3% | Excellent profitability and efficiency |
| Debt/Equity | 218 | Elevated but typical in pharma sector, manageable with strong cash flow |
| Dividend Yield | 0.85% | Suitable for income investors, modest yield |
LLY maintains a robust financial position, with low debt-to-equity ratios and high profitability margins, supporting future investments and dividend payouts.
Earnings Analysis
- Recent Earnings: EBITDA and Net income continue to reflect strong operational performance, with notable profitability.
- EPS Trends: Consistent upward trajectory over the +1-year period ($29.68 to $30.19) underpin long-term growth potential.
- Revisions: High number of upward revisions (+9 for +1 year), indicating positive analyst sentiment.
- Earnings Quality: Sustained revenue growth, operating margins (~45.8%), and high gross margins (~83%) support earnings sustainability.
Technical Analysis
- Price Action: The stock recently traded near the lower side of the 50-day moving average (~$756) but remains above support levels.
- Moving Averages: The current price (
$710) is below the 50-day MA ($756), suggesting brief correction; longer-term trend remains positive. - RSI (39.5): Slightly oversold but not yet indicating a significant reversal.
- MACD: Negative but approaching potential crossover; indicates potential bullish reversal soon.
Analyst Consensus & Price Targets
| Target | Price | Number of Opinions |
|---|---|---|
| Low | $650 | 1/27 |
| Median | $876 | 19/27 |
| High | $1190 | 7/27 |
| Avg | $888 | - |
The wide range of targets reflects differing long-term outlooks, but the median and mean targets suggest 23-25% upside from the current price.
Price Target Analysis
- Short-Term (3 months): Expect consolidation or slight correction towards support zones (~$690). Short-term volatility aligns with RSI and MACD signals.
- Mid-Term (12 months): Targets ~$900, driven by pipeline approvals, revenue growth, and strong earnings momentum.
- Long-Term (3+ years): Targets ~$1190 supported by expanding indications, innovation, and increased market penetration.
Key Risks & Opportunities
Risks:
- Regulatory hurdles or delays in pipeline approvals
- Competitive landscape and patent expiries
- Macro-economic factors affecting healthcare spending
Opportunities:
- Launch of new drugs and therapies
- Pipeline progress and FDA approvals
- Strategic acquisitions and partnerships
Investment Recommendation
Hold with a bullish outlook over 12-24 months. Given current valuation, strong fundamentals, and technical signs, LLY could generate +20-30% returns towards the mid and high-term targets, with further upside possible if key catalysts are realized.
This analysis integrates critical financial metrics, earnings trajectories, technical signals, and analyst sentiment to provide a comprehensive outlook on LLY, supporting a positive investment stance.