Leerink Partners Reiterates Outperform Rating on Eli Lilly (LLY)

Leerink Partners analyst Andrew Berens reiterated an Outperform rating and $990.00 price target on Eli Lilly (NYSE: LLY)

The analyst comments "We revised our model ahead of 3Q results. We bumped up US tirzepatide and slightly lowered ex-US tirzepatide forecasts, and we now reflect a significant IPR&D charge. Although tirzepatide (Mounjaro + Zepbound) faces a tough comp sequentially due to channel stocking in 2Q, we are hoping that ex-US sales are above expectations, and we continue to expect upward pressure on 2025+ consensus forecasts. We bumped up 3Q revenue 2% from $12.0B to $12.2B which is now in line with cons’ $12.2B. We raised our pre-IPR&D operating income projection 4% from $4.7B (margin of 39.3%) to $4.9B (margin of 40.2%). The impact of our model changes bumped our 3Q EPS pre-IPR&D from $4.27 to $4.32. But including the 3Q IPR&D charge of $2.8B (or $3.08/share) lowered our EPS to $1.24. Note that the IPR&D charge is not yet fully reflected in cons.’ 3Q24 EPS est. of $3.75. We left our 2025E EPS of $24.75 unchanged, which is 7% above cons’ $23.11. Maintain OP and $990 PT on LLY shares."

For an analyst ratings summary and ratings history on Eli Lilly click here. For more ratings news on Eli Lilly click here.

Shares of Eli Lilly closed at $932.06 yesterday.

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