Eli Lilly (LLY) Stock Forecast & Price Target

Eli Lilly is expected to perform well in the coming years due to various factors, including the potential success of their non-obesity pipeline assets such as donanemab in early/preclinical AD and the positive outlook for their obesity portfolio assets. Additionally, their BD activities and pipeline products are expected to contribute to their growth, and the company’s strong showing at the ADA conference has increased the likelihood of a guidance raise. However, potential pricing and rebate pressure and the performance of certain pipeline products remain as downside risks. Financial updates include a decrease in Foundayo estimates, increased retatrutide POS, and expected 2Q26 IPR&D of $2.8B, leading to a forecast of $20,660M in revenues and $6.35 in EPS for 2Q26.

Eli Lilly is facing potential challenges with the ramp-up of their drug Foundayo, leading analysts to reduce their sales and earnings estimates for the company. This is due to a lack of strong language and limited evidence of significant market impact beyond modest TRx trends. Additionally, their competitors' products are gaining more traction in the market, further hindering growth potential. As a result, Eli Lilly's financial outlook for the next few years is less positive compared to market consensus, with potential declines in key sales and earnings metrics.