Key insights
- BMO Capital reiterated an Outperform rating on Eli Lilly (LLY) with a $1,300 price target based on positive maintenance study data for Zepbound and Foundayo, indicating improved treatment durability. The data suggests low-dose Zepbound is effective for weight loss maintenance. Seventeen analysts have revised earnings upwards. LLY also launched its Alzheimer's drug in India. This news is mildly bullish for LLY and the healthcare sector.
Investing.com - BMO Capital reiterated an Outperform rating and $1,300.00 price target on Eli Lilly (NYSE:LLY) stock following new maintenance study data. The pharmaceutical giant, with a market cap of $891 billion, currently trades at $998, which InvestingPro data suggests is undervalued relative to its Fair Value.
The firm commented that maintenance studies show a path to incretin durability. SURMOUNT-MAINTAIN and ATTAIN-MAINTAIN data solidify Zepbound and Foundayo’s competitive profiles in the maintenance setting.
SURMOUNT-MAINTAIN data demonstrated that low dose 5 mg Zepbound is sufficient in maintaining weight loss following GLP-1 treatment. Patients regained 5.6 kg on average at 52 weeks compared to -0.8 kg at the maximum tolerated dose.
The data builds on previously top-lined ATTAIN-MAINTAIN data showing meaningful weight maintenance following switching from injectable Wegovy to Foundayo.
Demonstrated maintenance dosing for both Zepbound and Foundayo contribute to better expectations of patient durability as they achieve their weight goals, BMO Capital said. The positive outlook aligns with broader analyst sentiment, as InvestingPro Tips reveal that 17 analysts have revised their earnings upwards for the upcoming period. Investors can access 13 additional ProTips for deeper insights into Eli Lilly’s investment potential.
In other recent news, Eli Lilly has launched its Alzheimer’s drug, Lormalzi, in India, pricing a 350 mg vial at $957. The drug, also known as Donanemab, is set to become commercially available later this month and will be administered as an intravenous infusion every four weeks. Additionally, Eli Lilly reported results from two late-phase trials on weight maintenance for patients switching from higher-dose injectable obesity medications to oral Foundayo or lower-dose Zepbound. The trials indicated that participants maintained most of their prior weight loss after a year. Furthermore, the company announced a $4.5 billion investment in its Indiana manufacturing expansion, bringing its total capital commitments in Indiana to over $21 billion since 2020. This investment will support the development of a new active pharmaceutical ingredient site and a genetic medicine manufacturing facility. In another development, Eli Lilly revealed four-year disease clearance data for Omvoh in treating ulcerative colitis, with 63.5% of patients maintaining disease clearance over four years. Lastly, the company declared a quarterly dividend of $1.73 per share for the second quarter of 2026, payable to shareholders on June 10, 2026.
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