BMO Maintains Outperform Rating on Eli Lilly (LLY), Sets $900 PT

On May 30, BMO Capital Markets reiterated its Outperform rating on Eli Lilly and Company (NYSE:LLY), setting a price target of $900 following the company’s announcement of a $1 billion deal to acquire SiteOne Therapeutics. The move is seen as a strategic expansion of Lilly’s presence in the growing market for non-opioid pain treatments. The acquisition grants Eli Lilly and Company (NYSE:LLY) access to SiteOne’s pipeline, including its lead compound currently in Phase 2 trials.

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Analyst Evan Seigerman of BMO described the transaction as a savvy move to strengthen Lilly’s competitive position in pain management, a space increasingly targeted by biotech peers such as Vertex Pharmaceuticals. “SiteOne’s assets align with Lilly’s broader focus on innovation in neurology and pain,” Seigerman noted in a client briefing. He highlighted the potential long-term value of diversifying into non-addictive pain therapies as regulatory and market pressures mount on opioid-based treatments.

This latest acquisition underscores Eli Lilly’s broader strategy of bolstering its pipeline through targeted deals. The pharmaceutical giant has been on a growth trajectory, fueled by its diabetes and weight-loss drug portfolio, and now appears poised to deepen its footprint in neuroscience. Seigerman’s confidence in Lilly’s execution and pipeline progress supports BMO’s bullish stance on the stock.

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