Eli Lilly is on a tear due the success of its weight loss drugs, and the rally is only beginning, according to Berenberg. The firm upgraded the pharmaceutical stock to buy from hold. It also raised its price target to $1,400 from $1,220, suggesting 23% upside from Monday’s close. “Investor expectations for Lilly to maintain its lead in the fast-growing obesity market are undoubtedly high,” analyst Kerry Holford said Monday in a note to clients. “We are confident in this and see upside to FY 2026 guidance. Meanwhile, the external pipeline investment that obesity success is fuelling remains underestimated.” Shares of Eli Lilly have jumped 52% over the past year, due to growing use of GLP-1s for weight management in patients. Lilly makes both Mounjaro and Zepbound. The former aims to improve blood sugar control, while the latter is used to treat patients with health conditions related to weight. LLY 1Y mountain Shares are up 52% over the past 12 months. The ongoing boom in that class of drugs should continue to drive value to Eli Lilly, particularly as the company releases new GLP-1s with easier delivery methods. “Although off to a slow start, we expect the imminent diabetes approval for Foundayo (oral GLP-1) to unlock significant demand,” Holford wrote. Eli Lilly has other drugs in its pipeline that could bring in billions of dollars to its business, according to the analyst. “Many of the resulting new pipeline entrants have multibillion-dollar sales potential and offer important diversification optionality,” she wrote. Berenberg’s call falls in line with consensus on the Street. Of the 34 analysts covering Eli Lilly, 27 have a buy or strong buy on the stock, LSEG data shows. Shares rose more than 1% in the premarket following the upgrade.
