CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target price by $56 to $885, reflecting 57.0x our 2025 EPS, justified by LLY’s robust revenue and earnings growth outlook. We lift our 2024 EPS estimate by $0.10 to $12.50 and our 2025 view by $0.06 to $15.53. Leaving behind a year of robust performance in 2023 with top-line revenue growth of 28% Y/Y, we think LLY will continue to outperform peers. We see superior growth prospects for Eli Lilly in the next two years in an environment where competitors will see slower growth and more limited cushion against key drugs’ loss of exclusivities. We updated our model and now expect 2024 revenue growth of 21% Y/Y and another 14% Y/Y in 2025, while we expect record EPS growth of 98% Y/Y and 24% Y/Y, respectively, for 2024 and 2025. While strong sales growth will be fueled by the diabetes and obesity portfolio, we think the FDA regulatory action for Donanemab (to treat early Alzheimer’s disease), now expected in Q4 2024, will be key to follow.