Why Eli Lilly Stock Climbed to a Record High Today

Shares of** Eli Lilly **(LLY +2.87%) rose to a new all-time high on Tuesday, following upbeat analyst remarks.

Image source: Getty Images.

Getting more bullish

JPMorgan analyst Chris Schott reiterated his overweight (read: buy) rating on Eli Lilly's stock and boosted his share price target from $1,300 to $1,400.

Even after today's gains, JPMorgan's new price forecast implies potential returns of over 13% for investors who buy Eli Lilly's shares now.

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NYSE: LLY

Eli Lilly

Today's Change

(2.87%) $34.47

Current Price

$1,234.53

Key Data Points

Market Cap

$1.1TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$1223.70 - $1249.21

52wk Range

$623.78 - $1249.45

Volume

122.9K

Avg Vol

3.3M

Gross Margin

82.83%

Dividend Yield

0.54%

The healthcare titan's market capitalization has ballooned to more than $1.1 trillion, driven by the blockbuster success of its popular GLP-1 drugs, Mounjaro and Zepbound.

Schott predicts that the rapid expansion of the U.S. weight-loss drug market and strong growth in international markets will drive Eli Lilly's sales and profits sharply higher.

In turn, Schott expects the medicine maker's earnings to exceed consensus estimates when it reports its second-quarter financial results on Aug. 5.

Additional growth catalysts

The obesity drug market is set to grow even larger. On July 1, the new GLP-1 Bridge program made Zepbound and Foundayo available to eligible Medicare patients for as low as $50 per month.

With an estimated 20 million Medicare patients potentially meeting the criteria for obesity drugs, there's a good chance JPMorgan's $1,400 target price for Eli Lilly's shares proves conservative.

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