Bank of America on Wednesday reiterated its “Buy” rating and $1,000 price objective on Eli Lilly and Co (NYSE:LLY), ahead of the drugmaker’s second-quarter earnings due on August 7, citing durable growth prospects and strong positioning in the obesity and diabetes markets.
The bank made only minor adjustments to its revenue and earnings estimates through 2026, driven primarily by higher sales expectations for weight-loss drug Zepbound.
Analysts now expect 2025 revenue to rise 1% and earnings per share to increase by 1.9%.
Long-term forecasts for key products—including Mounjaro, Zepbound, orforglipron, and retatrutide—remain largely unchanged.
Bank of America analysts expect investor focus during the earnings call to center on US drug pricing risks, including potential “most favored nation” rules, and pharmaceutical tariffs under Section 232.
Clinical trial updates and brand performance—particularly for obesity treatments and new launches like Kisunla for Alzheimer’s disease—are also expected to draw attention.
“We continue to like LLY,” the analysts wrote, arguing the stock is “not ‘expensive’ on a PE-to-growth basis, by our math.”
Eli Lilly remains one of two dominant players in the fast-growing incretin-based obesity and diabetes drug class, Bank of America noted.