The recent price performance of Eli Lilly (NYSE:LLY) may not reflect all that the pharmaceutical company has been doing. However, since the start of the week, the company has gotten some positive attention from the market. Analysts have also weighed in and made some bullish calls on the stock, which sent LLY higher for the third straight session.
When Bank of America analysts increased their price target on the company from $600 to a Street high of $700 on Friday, they said the company’s potential in the weight loss space motivated the increase. For analyst Geoff Meacham, the possibility of an FDA label expansion for the company’s obesity therapy, Mounjaro, is why he has chosen to be bullish on the stock. “LLY shares have been under pressure, but we expect continued clinical and commercial success to drive strength,” Meacham said.
In addition, the pharma giant has been on a buying spree to expand its business. Recently, the company announced it was buying radiopharmaceutical company Point BioPharma (NASDAQ:PNT) for $1.4 billion, or $12.50 a share cash, 87% more than Point’s closing price on Monday. The company moved for the purchase to benefit from Point’s radioligand therapies, a treatment that reduces radiation damage to surrounding healthy tissues.
Is Eli Lilly a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on LLY stock based on 16 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $599.56 per share implies 7.10% upside potential.
