CICC Research Raises Eli Lilly Target Price to $1,060 Amid Strong Earnings

CICC Research has increased its target price for Eli Lilly and Company (NYSE: LLY) from $801.00 to $1,060.00, reflecting a positive outlook for the pharmaceutical giant. This revision comes following the company’s robust quarterly earnings report released on October 30, 2023, which exceeded analysts’ expectations. Currently, CICC maintains a neutral rating on the stock.

Other financial institutions have also reassessed their positions on Eli Lilly. On August 11, 2023, Deutsche Bank Aktiengesellschaft lowered its target price from $1,010.00 to $900.00, maintaining a “buy” rating. In contrast, on November 10, 2023, Leerink Partners upgraded Eli Lilly shares from a “hold” to a “strong-buy” rating.

JPMorgan Chase & Co. adjusted its price target from $1,100.00 to $1,050.00, while also assigning an “overweight” rating on September 16, 2023. Daiwa Capital Markets took a more cautious stance, downgrading the stock from “outperform” to “neutral” with a price objective of $700.00 on August 17, 2023. The company’s ratings present a mix of optimism and caution, with three analysts giving a “strong buy,” fifteen assigning a “buy,” and seven opting for a “hold.” According to MarketBeat, Eli Lilly currently holds a consensus rating of “Moderate Buy” with a consensus price target of $1,015.11.

Strong Earnings Performance

Eli Lilly’s latest earnings report indicated a significant increase in financial performance. The company reported earnings per share (EPS) of $7.02, surpassing analysts’ expectations of $6.42 by $0.60. The net margin stood at 25.91%, while the return on equity reached an impressive 92.72%. Revenue for the quarter amounted to $17.60 billion, exceeding the consensus estimate of $16.09 billion. This revenue figure represents a remarkable 53.9% increase compared to the same quarter in the previous year.

In light of this performance, Eli Lilly has set its fiscal year 2025 guidance at an EPS range of 23.000-23.700. Analysts project an average EPS of 23.48 for the current fiscal year.

Dividend Announcement and Institutional Activity

In addition to the strong earnings report, Eli Lilly has declared a quarterly dividend of $1.50, which will be distributed on December 10, 2023. Shareholders of record on November 14, 2023, will receive this dividend, which reflects an annualized total of $6.00 and a dividend yield of 0.6%. The company’s current dividend payout ratio is 29.35%.

Recent trading activity indicates robust institutional interest in Eli Lilly. Wealth Preservation Advisors LLC initiated a new position in the company during the first quarter, valued at $27,000. Similarly, Sumitomo Mitsui Financial Group Inc. and Evolution Wealth Management Inc. acquired new positions worth approximately $27,000 and $29,000, respectively, in the second quarter. Notably, Steph & Co. increased its stake by 290.0% in the third quarter, now holding 39 shares valued at $30,000. Institutional investors currently own 82.53% of Eli Lilly’s stock.

Eli Lilly and Company continues to innovate in the pharmaceutical industry, developing and marketing a range of products for various health conditions, including diabetes and obesity. The company’s strong financial performance and positive analyst ratings suggest a promising future as it navigates the competitive landscape of the healthcare sector.