Eli Lilly Analysts Boost Price Target to $1,141.73 Amid Strong Results
Eli Lilly and Company (NYSE: LLY) has garnered an optimistic outlook from financial analysts, who have set an average price target of $1,155.36 for the stock. This consensus rating, classified as a “Moderate Buy,” comes from twenty-six brokerages currently monitoring the company. Among these, five analysts have assigned a “hold” recommendation, while seventeen recommend a buy and four have given a strong buy rating.
Several research firms have recently adjusted their ratings for Eli Lilly, reflecting the company’s robust performance. On November 10, 2023, Leerink Partners upgraded Eli Lilly from a “hold” to a “strong-buy” rating. Additionally, HSBC Global Research shifted its rating from “moderate sell” to “hold” on August 27, 2023. Wolfe Research raised its price target from $1,050.00 to $1,250.00 and assigned an “outperform” rating, while Truist Financial increased its target from $1,038.00 to $1,182.00, maintaining a “buy” rating. Finally, The Goldman Sachs Group lifted its price objective from $951.00 to $1,145.00 with a “buy” rating.
Quarterly Earnings Exceed Expectations
Eli Lilly reported its quarterly earnings on October 30, 2023, revealing an earnings per share (EPS) of $7.02, surpassing the consensus estimate of $6.42 by $0.60. The company achieved revenues of $17.60 billion, significantly exceeding analyst expectations of $16.09 billion. Eli Lilly’s impressive performance reflects a year-over-year revenue increase of 53.9%, compared to $1.18 EPS during the same period last year. The firm has set guidance for fiscal year 2025 at $23.00 to $23.70 EPS, indicating continued growth potential. Analysts predict an EPS of $23.48 for the current fiscal year.
The company’s return on equity stands at an impressive 109.52%, with a net margin of 30.99%.
Dividend Increase and Institutional Investments
In addition to its strong earnings, Eli Lilly recently declared a quarterly dividend of $1.73, payable on March 10, 2024. Shareholders of record on February 13, 2024, will receive this payment, which reflects an increase from the previous quarterly dividend of $1.50. This adjustment indicates a commitment to returning value to shareholders, resulting in an annualized dividend of $6.92 and a dividend yield of 0.6%. The company’s dividend payout ratio (DPR) is at 29.35%.
Institutional investors have also shown growing interest in Eli Lilly. Recently, Wealth Preservation Advisors LLC acquired a new position in the company valued at approximately $27,000. Similarly, Sumitomo Mitsui Financial Group Inc. and Evolution Wealth Management Inc. made new investments valued at $27,000 and $29,000, respectively. Notably, Steph & Co. raised its position by 290.0%, now owning 39 shares valued at $30,000.
Currently, institutional investors and hedge funds hold 82.53% of Eli Lilly’s stock, underscoring strong institutional confidence in the company’s future prospects. Eli Lilly’s strong fundamentals and positive analyst sentiment position it well for continued success in the pharmaceutical industry.
Eli Lilly and Company, founded in 1876 and headquartered in Indianapolis, Indiana, focuses on researching, developing, manufacturing, and commercializing a wide array of medicines and therapies for patients globally. The company operates across various regions, including North America, Europe, and Asia, addressing both developed and emerging markets. Under the leadership of President and Chief Executive Officer David A. Ricks, Eli Lilly continues to innovate and expand its product offerings, contributing to its growth in the competitive pharmaceutical landscape.
