Eli Lilly (SYM: LLY) is offering opportunity on its recent pullback to $935 a share.
After catching support at just under $895, it’s starting to pivot higher again. From here, we’d like to see LLY initially retest $960.
Helping, sales of its diabetes and obesity medications, Mounjaro and Zepbound are still strong. Two, LLY yields 0.57% at the moment. While it’s not a substantial dividend, it’s still an added bonus for a stock set to explode even higher.
In its most recent earnings report, company revenue jumped 36% thanks to those two obesity treatment stocks. Second quarter EPS of $3.28 was up 68% year over year. Plus, the company even raised its full-year guidance by $3 billion. It also raised its EPS guidance to a new range of $15.10 to $15.60 and non-GAAP EPS to a new range of $16.10 to $16.60.
Even better, analysts at Citi just resumed coverage of LLY with a $1,060 price target.
The firm says increased Zepbound forecasts could send the stock to higher highs. “We believe the market currently underestimates the potential for key diabetes and obesity drugs Mounjaro and Zepbound (tirzepatide) and the diabetes/obesity pipeline (retatrutide and orforglipron), as well as other assets including Omvoh in UC and Crohn’s, and Verzenio in adjuvant breast and prostate cancer,” they added, as quoted by CNBC.
