TLDR
- Eli Lilly (LLY) stock received a Buy upgrade from Freedom Capital Markets, with price target raised to $1,200 from $1,050 following strong Q4 earnings that beat Wall Street estimates
- The company reported Q4 EPS of $7.54, beating consensus of $7.48, with revenue of $19.29 billion exceeding expectations of $17.85 billion, up 42.6% year-over-year
- Growth is diversifying beyond weight-loss drug Zepbound, with analyst citing the company’s proprietary technology and vertical integration as competitive advantages
- Eli Lilly agreed to acquire Orna Therapeutics for up to $2.4 billion to add circular-RNA and in-vivo CAR-T capabilities to its pipeline
- Wall Street consensus remains Strong Buy with 16 Buy and three Hold ratings, average price target of $1,258.71 implies 22.43% upside potential
Eli Lilly stock climbed Tuesday after Freedom Capital Markets upgraded the pharmaceutical giant to Buy from Hold. The firm raised its price target to $1,200 from $1,050.
The upgrade follows fourth-quarter earnings that crushed Wall Street expectations. Eli Lilly reported earnings per share of $7.54, beating the consensus estimate of $7.48. Revenue hit $19.29 billion compared to analyst forecasts of $17.85 billion.
That marked a 42.6% increase from the same quarter last year. The company earned $5.32 per share in the year-ago period.
Freedom Capital analyst Ilya Zubkov pointed to strong financial results and positive 2026 guidance as reasons for the upgrade. He said growth is spreading beyond Zepbound, the company’s popular weight-loss drug.
LLY shares opened at $1,015.48 Tuesday. The stock has gained 20% over the past year. It carries a market capitalization of $960.02 billion.
Technology Drives Competitive Edge
Zubkov highlighted Eli Lilly’s broad use of proprietary technology across its operations. The company maintains vertical integration that helps drive revenue growth.
This technology gives Eli Lilly a competitive advantage in the marketplace, according to Freedom Capital. The firm said it makes customers less likely to switch providers. That could support stronger valuation multiples for the stock long term.
The company set full-year 2026 guidance at $33.50 to $35.00 earnings per share. Analysts expect Eli Lilly to post $23.48 earnings per share for the current fiscal year.
Acquisition Expands Pipeline
Eli Lilly agreed to acquire Orna Therapeutics for up to $2.4 billion. The deal adds circular-RNA and in-vivo CAR-T capabilities to diversify beyond GLP-1 drugs. It bolsters the company’s next-generation RNA and cell therapy pipeline.
The company also advanced obesity and cardiometabolic candidates. Eloralintide moved into Phase 3 trials, expanding its obesity franchise. Solbinsiran showed Phase 2 progress in treating high-risk cholesterol.
Both candidates increase future revenue options for Eli Lilly. The moves support the company’s push to diversify its product lineup.
Loop Capital set a $1,200 price target on the stock Tuesday. Truist Financial placed its target at $1,281. Berenberg Bank raised its price target to $950 from $830 with a Hold rating.
The stock carries a consensus Strong Buy rating from 19 Wall Street analysts. That’s based on 16 Buy and three Hold recommendations issued in the last three months. The average price target of $1,258.71 suggests 22.43% upside from current levels.
Institutional investors have been active in the stock. Vanguard Group grew its position by 1.2% during the fourth quarter. It now owns 81,965,974 shares valued at $88.09 billion.
Capital Research Global Investors boosted its stake by 20.9% in the third quarter. The firm holds 25,088,371 shares worth $19.14 billion. Fisher Asset Management increased its position, signaling confidence from a major investor.
The company maintains a P/E ratio of 44.25 and a P/E/G ratio of 0.94. Its debt-to-equity ratio stands at 1.71. The quick ratio is 1.24 with a current ratio of 1.55.
Eli Lilly also partnered with gene-editing startup Seamless Therapeutics to broaden research approaches. The 52-week range for the stock is $623.78 to $1,133.95.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
