Eli Lilly Stock Could Soar to $1,150, According to a Wall Street Analyst. Is It a Buy at Around $945?
Shares of Eli Lilly (NYSE: LLY) have already soared by about 58% in 2024. Despite the run-up, many analysts on Wall Street think the pharmaceutical stock can climb a lot higher. Bank of America analyst Geoff Meacham is so encouraged by the company's recent progress with obesity, diabetes, and Alzheimer's disease that he thinks the stock can climb to $1,150 per share.
Meacham's recently updated price target implies a gain of 25% from the stock's closing price on Aug. 19, but that gain is a long way from guaranteed. Let's weigh the risks this stock presents against the opportunities in front of its pharmaceutical business to see if it presents an acceptable risk-to-reward ratio for everyday investors.
Eli Lilly sells a handful of different blockbuster drugs, but all attention right now is on its new best-seller tirzepatide. This is the generic name of the treatment it markets as Mounjaro for diabetes and Zepbound for weight management. Mounjaro earned approval from the U.S. Food and Drug Administration (FDA) in 2022, and Zepbound followed in November 2023.
Source Fool.com
