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Eli Lilly upgraded to Buy with 20% upside on obesity drug growth and pipeline strength

Analyst Insights
20 Apr 2026
Seeking Alpha
View Source
Bullish
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Eli Lilly has been upgraded to a Buy rating with a 12-month price target of $1,150, suggesting a 20% potential gain. The company's growth is driven by obesity treatments Mounjaro and Zepbound, with additional near-term catalysts from Foundayo and the Kelonia acquisition. Analysts expect strong earnings growth by fiscal year 2026, though risks include patient adherence to GLP-1 therapies and regulatory requirements for Foundayo. Investments in supply chain and promising pipeline drugs like retatrutide support Eli Lilly's long-term competitive position, despite possible short-term margin pressures due to capital expenditures.

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