Watch These Eli Lilly Price Levels as Stock Slumps on Tepid Sales Outlook

Shares of Eli Lilly and Company (LLY) took a tumble on Tuesday after the pharmaceutical giant lowered its 2024 full-year revenue forecast, raising concerns about moderating demand for its flagship weight-loss drugs, Mounjaro and Zepbound. The stock staged a decisive breakdown below the lower trendline of a symmetrical triangle and the 50-day MA, opening the door to further short-term downside. Investors should watch key support levels on Eli Lilly's chart around $720 and $625, while also monitoring important overhead areas near $860 and $965.

Eli Lilly's Q4 2024 revenue guidance came in at approximately $13.5 billion, representing growth of 45% compared to Q4 2023. However, this figure was $400 million, or about 3%, below the guidance range issued on October 30, 2024. The company attributed this shortfall to lower-than-expected channel inventory at year-end and moderating demand for its weight-loss drugs. While Eli Lilly anticipates sales of Mounjaro and Zepbound to accelerate as it ramps up production in the first half of this year, investors remain cautious about the company's ability to meet its revenue targets.



Key support levels for Eli Lilly's stock include $720 and $625, which represent the lower trendline of the symmetrical triangle and the 50-day MA, respectively. If the stock breaks below these levels, it could signal further short-term downside. On the upside, important overhead areas to watch are near $860 and $965, which correspond to the upper trendline of the symmetrical triangle and the stock's all-time high, respectively. A break above these levels could indicate a potential reversal in the stock's fortunes.



Eli Lilly's 2025 revenue guidance anticipates sales between $58.0 billion and $61.0 billion, representing growth of 32% at the midpoint compared to expected 2024 revenue. The company expects revenue growth contributions in 2025 from new Lilly medicines such as Jaypirca, Ebglyss, Omvoh, and Kisunla; approvals of new indications for existing Lilly medicines; launches of Mounjaro in additional worldwide markets; and potential launches of new medicines such as imlunestrant for metastatic breast cancer. However, investors should remain vigilant as the company navigates the dynamics of the U.S. incretin market and channel, which may impact the growth of its weight-loss drugs.

In conclusion, Eli Lilly's stock slump on tepid sales outlook has raised concerns about the company's ability to meet its revenue targets. Investors should watch key support levels around $720 and $625, as well as important overhead areas near $860 and $965, to gauge the stock's potential for further short-term downside or a potential reversal. As Eli Lilly continues to expand its manufacturing capacity and launch new medicines, investors will be closely monitoring the company's progress in meeting its revenue guidance and maintaining its competitive edge in the pharmaceutical industry.