Guggenheim has raised its price target for Eli Lilly (LLY) shares to $1,273 from $1,235, while maintaining a Buy rating. This updated target is approximately 7% higher than the current trading price of around $1,189. Over the past year, LLY stock has risen by 51%, contributing to a market capitalization of about $1.06 trillion.

Analyst Seamus Fernandez revised his price model in anticipation of Eli Lilly's second-quarter earnings report, scheduled for August 5. Guggenheim's forecast for Q2 revenue stands at $20.66 billion, surpassing the Wall Street consensus of $20.55 billion. The firm attributes this optimistic outlook to the strong prescription trends for the drug tirzepatide, marketed as Zepbound and Mounjaro, which has seen revenue growth of 47% year-over-year, totaling $72.25 billion in the last twelve months.

Focus on Weight-Loss Drugs

Eli Lilly's newer obesity treatment, Foundayo, launched in April. Although Guggenheim has adjusted its near-term sales estimates due to the early stage of the drug's rollout, it noted that marketing efforts intensified in June, which could lead to an uptick in sales. The firm forecasts that the upcoming earnings call will likely address guidance increases, opportunities for international expansion, and Medicare coverage for Eli Lilly's weight-loss medications.

Furthermore, Guggenheim has increased its probability of success for retatrutide, another weight-loss drug, to 85%, up from 70%. This follows presentations shared at the American Diabetes Association conference, with projections indicating potential sales could exceed $25 billion annually by 2035.

Support from Other Analysts

Guggenheim's optimistic stance is echoed by other analysts. Truist Securities has raised its price target for LLY to $1,370, citing robust growth in U.S. prescriptions for Zepbound and Mounjaro. Similarly, Cantor Fitzgerald has a target of $1,350, while RBC Capital maintains an Outperform rating with a price target of $1,250. Across 22 Wall Street analysts, LLY enjoys a consensus Strong Buy rating based on 20 Buy and two Hold recommendations issued in the past three months. The average price target across these analysts is $1,294.06, suggesting a potential upside of roughly 17% from current levels.

Eli Lilly is also preparing to present 16 abstracts at the 2026 Alzheimer’s Association International Conference in London, which will cover its Alzheimer’s treatment Kisunla and associated patient outcomes. The company is set to report its Q2 earnings on August 5.

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