Eli Lilly price target raised to $895 from $675 at Citi

Citi analyst Andrew Baum raised the firm’s price target on Eli Lilly to $895 from $675 and keeps a Buy rating on the shares. The analyst cites increased anticipated risk-adjusted peak sales for Eli Lilly’s oral small molecule GLP-1 agonist orforglipron as a mono/fixed dose combination for the target increase. The risk of drug-related hepato-toxicity is diminishing with both Phase III trials have been enrolling patients since 2023, the analyst tells investors in a research note. The firm says that with peak incretin sales estimates for Lilly over $85B, it is “ever more sensitized” to competitive risks to Lilly and Novo’s dominance. It anticipates unconstrained volumes of generic semaglutide in China in the mid-term and in western markets post 2032. It believes Lilly and Novo retain sufficient competitive advantages to preserve their dominant market position and grow into their current multiples.