Eli Lilly price target raised to $850 from $775 at JPMorgan

JPMorgan raised the firm’s price target on Eli Lilly to $850 from $775 and keeps an Overweight rating on the shares after meeting with management. The company “remains optimally positioned” in the diabetes and obesity market with Zepbound off to a strong start with greater than expected cash pay demand for the drug, the analyst tells investors in a research note. Despite significant expected capacity expansion, Eli Lilly continues to expect demand for incretins to outstrip supply for the foreseeable future, which should translate to more stable pricing in the obesity space over the next several years, the analyst tells investors in a research note. The firm says Lilly’s oral GLP-1 should directly address capacity dynamics and there could be further upside to Street estimates for the asset if the Phase 3 data in 2025 confirms a clean profile for the drug.