Eli Lilly (LLY) Stock Analysis: Buy, Sell, or Hold at $850?

Eli Lilly Financial Performance 2024

Eli Lilly has shown robust financial performance in 2024. The company reported a significant increase in revenue, driven by the success of its drugs Mounjaro and Zepbound. In Q3 2024, the revenue increased by 20%, with strong volume growth from these drugs, although this was partially offset by $1.42 billion in revenue. The company's earnings per share (EPS) for 2024 is projected to be $13.79, with analysts providing a range of estimates.
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LLY Stock Analyst Recommendations 2024

Analysts have been optimistic about Eli Lilly's stock. The average price target for LLY is around $1,061, with a high estimate of $1,250 and a low estimate of $856. Robyn Karnauskas of Truist Securities raised her fair value estimation to $892 from $850, indicating a 15% upside from the stock's latest closing price. Wall Street analysts also forecast a rise in the stock price over the next 12 months, with an average 1-year price target of $1,032.96.

Pharmaceutical Market Trends 2024

The pharmaceutical industry in 2024 is witnessing several key trends:
  1. Gene Therapy and Gene Editing: There is significant progress in gene therapy and CRISPR genome editing, with the market expected to grow substantially.
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  2. mRNA Vaccine Development: mRNA vaccines are expanding to cover a broader spectrum of diseases, including malaria, HIV, tuberculosis, and rabies.
  3. Digital Health and AI: The use of digital health and AI for preventive and primary care is increasing, enhancing patient outcomes and healthcare efficiency.
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  4. Specialty Drugs: The market for specialty drugs is growing, with significant increases in sales of antidiabetes medications and GLP-1 drugs like Ozempic and Mounjaro.
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Buy, Sell, Or Hold LLY Stock At $850?

Given the current financial performance and analyst recommendations, holding or buying Eli Lilly stock at $850 appears to be a prudent decision. The stock has a strong upside potential, with analyst targets suggesting it could reach significantly higher prices. The company's robust pipeline and the successful performance of its key drugs provide a solid foundation for continued growth.
Moreover, the pharmaceutical market trends in 2024 indicate a favorable environment for companies like Eli Lilly, with increasing demand for innovative treatments and technologies. Therefore, holding or buying LLY stock at $850 is recommended, as the stock is expected to appreciate based on the company's performance and market trends.