J.P. Morgan Sees Strong Q2 for Eli Lilly, Maintains Overweight Rating

Eli Lilly and Company  (NYSE:LLY) is one of the high-margin pharma stocks to buy now. Eli Lilly and Company (NYSE:LLY) is set to report second-quarter results on August 7, and J.P. Morgan’s Chris Schott believes the stage is set for another strong showing. In a recent note, Schott outlined what he calls an “attractive setup” for the pharma heavyweight, pointing to continued momentum in its GLP-1 portfolio, led by weight-loss treatments Zepbound and Mounjaro.

J.P. Morgan Sees Strong Q2 for Eli Lilly, Maintains Overweight Rating

Schott is projecting second-quarter sales of $14.8 billion, about $370 million above Wall Street consensus. His bullish forecast is fueled by surging demand for Lilly’s GLP-1 drugs, with combined sales expected to reach $8.8 billion, a 60% year-over-year increase. Zepbound now commands an estimated 60–65% share of the obesity market, while Mounjaro continues to gain traction globally.

Though he expects earnings per share of $5.49, slightly below consensus due to increased R&D and marketing spend, Schott remains upbeat on the company’s broader growth trajectory. He anticipates any temporary headwinds from CVS formulary adjustments will be short-lived, with GLP-1 prescription growth expected to reaccelerate by the end of the year.

Looking ahead, Schott is optimistic about Eli Lilly’s pipeline, especially the once-daily oral GLP-1 candidate orforglipron. He sees the upcoming Phase 3 obesity data as a key catalyst and believes the drug could expand Lilly’s market leadership. With minimal patent risk and strong long-term visibility, Schott maintains an Overweight rating on the stock and a $1,100 price target, viewing current levels as an attractive entry point.

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