LLY reports 48% revenue growth to $23 billion and raises full-year guidance, prompting Morgan Stanley to increase its price target to $1,419.
Eli Lilly posted Q2 revenue of $22.97 billion, up 47.67% year-over-year, and earnings per share of $8.38, surpassing the $6.5845 consensus. The company raised its full-year revenue guidance to a range of $85 to $87 billion, reflecting strong demand for its obesity and diabetes treatments.
The blowout quarter included 60% volume growth in Q2, though $2.78 billion in IPR&D charges from acquisitions and a 13% decline in realized prices weighed on sentiment. Despite the earnings beat, shares dipped 3.32% over the past week, partly due to a lower beta of 0.506 and tax rate pressures.
Morgan Stanley responded by raising its price target for LLY to $1,419, citing potential for further gains if retatrutide secures BLA clearance in Q1 2027 and Zepbound maintains momentum. The firm’s revised target implies a 50% upside from current levels to $1,750 by August 2027.