Goldman Sachs: Eli Lilly's Shares May Surge By 140% With GLP-1 Drug Boom
Portfolio Pulse from Benzinga Neuro
Goldman Sachs predicts a 140% surge in Eli Lilly and Co. (NYSE:LLY) shares due to the booming demand for GLP-1 weight loss and diabetes drugs. The bank estimates that by 2028, GLP-1 drugs like Eli Lilly's Mounjaro and Zepbound could be used by 68 million Americans, potentially generating $400 billion in revenue. Despite this, Goldman Sachs maintains a 'Neutral' rating on Eli Lilly with a $600 price target, a 5% upside from current levels. The bank highlights the importance of upcoming GLP-1 studies which could further drive demand.
December 19, 2023 | 5:03 am
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Goldman Sachs forecasts a significant increase in Eli Lilly's stock value due to the expected demand for GLP-1 drugs, with a potential 140% surge. However, the firm currently maintains a 'Neutral' rating with a modest price target increase.
The predicted surge in Eli Lilly's stock is based on the anticipated widespread adoption of GLP-1 drugs, which could significantly boost the company's revenues. The comparison to the iPhone and Amazon's e-commerce impact underscores the potential magnitude of this growth. However, the 'Neutral' rating and modest price target suggest that Goldman Sachs sees other factors that may temper the stock's ascent in the short term, possibly due to market conditions or the company's broader portfolio.
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