HSBC Upgrades Eli Lilly (LLY) to Hold, Lifts Price Target to $700

Eli Lilly and Company (NYSE:LLY) is one of the best stocks for a 20-year long-term stock portfolio. Eli Lilly has substantially underperformed this year with YTD decline of over 5%. On August 8, its shares touched $625-$626, levels last seen in 2024. However, it has since appreciated by nearly 17% as investor sentiment improved.

August 27, HSBC analyst Rajesh Kumar upgraded Eli Lilly and Company (NYSE:LLY) to Hold from Sell and lifted his price target to $700 from $675, citing progress on the company’s oral weight-loss drug. HSBC, previously bearish on the stock, acknowledged that the bear case has now played out following positive late-stage trial results.

Photo by Myriam Zilles on Unsplash

The trial showed meaningful weight loss in patients with obesity and type 2 diabetes, coming in ahead of expectations and performing better than a rival’s oral treatment. This result strengthens Eli Lilly’s position in both U.S. and overseas markets. FDA approval is expected in 2026 and street forecasts suggest the drug could generate $15.5 billion in annual sales by 2032.

With that upgrade, the majority of analysts now have a Buy or equivalent rating on Eli Lilly and Company (NYSE:LLY), with no Sell ratings. The consensus 1-year median price target of $900 indicates a 23% potential upside.

Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company focused on the development, manufacture, and marketing of medicines for diabetes, oncology, immunology, and neuroscience.

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Disclosure: None. This article is originally published at Insider Monkey.