CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Following LLY’s solid Q4 earnings release this morning, we lift our target price by $86 to $788, 50.9x our projected 2025 EPS, above LLY’s historical forward P/E average, justified by LLY’s strong revenue and earnings growth potential. We raise our 2024 EPS estimate by $0.23 to $12.40, which points to 96% Y/Y growth. We initiate our 2025 view at $15.47. LLY posted Q4 EPS of $2.49 vs. $2.09, a noteworthy +19% Y/Y, $0.12 above the consensus. Q4 revenues of $9.4B, up 28% Y/Y, came in $152M above our estimate and $383M above consensus, driven by higher-than-expected sales for the obesity treatments Mounjaro ($2.2B) and the newly launched Zepbound ($176M). We expect 2024 to be another year of strong growth and pencil in a 19% Y/Y top-line sales increase as we expect continued robust momentum in the Diabetes/Obesity products along with solid performance for Verzenio (to treat breast cancer). We remain bullish on LLY shares and think indication expansions for Tirzepatide provide upside potential to our estimates.