Jefferies Maintains Buy Rating on Eli Lilly & Co with $905 Price Target

Jefferies analyst Akash Tewari maintained a Buy rating for Eli Lilly & Co with a price target of $905.00, citing the company's strong performance in the Healthcare sector. Tewari has a 5.5% average return and 43.05% success rate on recommended stocks. Eli Lilly & Co's market cap is $707.4B and has a P/E ratio of 49.49. However, corporate insider sentiment is negative, with an increase in insiders selling shares.

Jefferies analyst Akash Tewari maintained a Buy rating on Eli Lilly & Co (NYSE: LLY) with a reduced price target of $905.00, citing the company's strong performance in the healthcare sector. The analyst's decision comes despite disappointing clinical trial results for Eli Lilly's obesity drug, orforglipron, which showed an 11.2% absolute weight loss at the 36 mg dose, falling short of expectations [1].

The trial results revealed safety concerns, with 24% of participants experiencing vomiting and approximately 10% discontinuing treatment due to adverse events. Despite these setbacks, Jefferies maintained its Buy rating, acknowledging a mistake in its bullish outlook heading into the obesity drug data release.

Eli Lilly's recent financial performance has been robust. In the second quarter of 2025, the company reported an earnings per share (EPS) of $6.31, surpassing Wall Street expectations, and revenue of $15.56 billion, exceeding predictions [2]. However, the company's stock experienced a decline in pre-market trading, influenced by broader market conditions and investor sentiment.

The analyst's decision to maintain a Buy rating is supported by Eli Lilly's strong market position, with revenue growth driven by products like Mounjaro and Zepbound. The company also anticipates continued growth from its robust pipeline, including ongoing trials for tirzepatide and orforglipron, as well as recent acquisitions in genetic medicines and pain treatment.

Eli Lilly's corporate insider sentiment is negative, with an increase in insiders selling shares. The company's market cap is $707.4 billion, and it has a P/E ratio of 49.49. Despite these factors, Jefferies remains optimistic about Eli Lilly's long-term prospects in the healthcare sector.

References:
[1] https://www.investing.com/news/analyst-ratings/jefferies-lowers-eli-lilly-stock-price-target-on-disappointing-obesity-drug-data-93CH-4179541
[2] https://www.tradingview.com/news/tradingview:c395d8cedf83e:0-eli-lilly-co-sec-10-q-report/