Eli Lilly (LLY) Stock Price Prediction and Forecast 2025-2030
Since the start of 2020, Eli Lilly’s (NYSE: LLY) stock price chart has been straight up and to the right, up 504.34% and currently trading at $799.00. The company has been around since 1876 and the stock didn’t go public until 1952 but in the last 4 years, Eli Lilly went from a $100 billion market capitalization to $740 billion today, which also makes it a potential stock split stock. However, as investors, we care about the stock price years down the line and what Eli Lilly will do in the next 3 to 5 years and beyond. That is why 24/7 Wall Street looks at projected revenue and net income to give you our best estimate of future stock prices from 2025 to 2030. Other “experts” look at past growth rates and assign future stock prices to those past numbers. However, we will walk you through our assumptions and give you the key drivers we see propelling Eli Lilly’s stock in the future. Recent Eli Lilly Stock Updates and News 12/11/2024 Eli Lilly’s experimental breast cancer drug, imlunestrant, has shown promising results in a Phase 3 clinical trial. When combined with Verezenio, the drug significantly extended the lives of patients with HER2-negative, ER-positive breast cancer compared to standard hormone-suppressing therapies. 12/10/2024 Eli Lilly plans to investigate the potential use of its popular weight-loss medications to treat addictive behaviors like smoking, alcohol abuse, and drug addiction. CEO Dave Ricks stated that these medications may have broader applications beyond weight loss and that the company will initiate clinical trials to explore these possibilities. 12/9/2024 Eli Lilly is planning to introduce Tirzepatide (or Mounjaro), the company’s diabetes and obesity drug, to the Indian market next year. The company has already received marketing authorization from Indian regulatory authorities for both Type 2 diabetes and obesity indications. 12/6/2024 Eli Lilly is investing $3 billion to expand its recently acquired manufacturing facility in Wisconsin. This expansion aims to increase production of the company’s highly successful diabetes and weight-loss medications, Mounjaro and Zepbound. The expansion will also add 750 new jobs to the existing 100-person time. 12/5/2024 U.S. President-elect Donald Trump recently attended a meeting with Eli Lilly’s and Pfizer’s chief executives to discuss collaborations for cancer research and other medical topics. 12/3/2024 Today’s stock market is seeing mixed results, but Eli Lilly is up 1.29% due to positive corporate news. 11/27/2024 Eli Lilly has been downgraded by Ersete Gropu from a “Buy” to a “Hold” rating. While Eli Lilly’s pipeline remains promising, the concern stems from a recent spike in the company’s inventory and receivables relative to sales. 11/26/2024 Eli Lilly’s stock is rising after a new proposal from President Joe Biden. The proposal suggests that Medicaid and Medicare should cover the cost of weight-loss drugs for patients, which could lead to increased demand for drugs like Mounjaro. 11/22/2024 The FDA is still evaluating the supply situation for Eli Lilly’s weight-loss drug, tirzepatide. They are reassessing their previous decision to remove it from the drug shortage list. Until the FDA makes a final decision, compounders of tirzepatide will not face regulatory action. 11/21/2024 Eli Lilly recently announced a new partnership with Laekna Therapeutics, a Hong Kong-based biotech firm. The partnership will work on advancing the development of LAE102, an antibody targeting the ActRIIA receptor, primarily aimed at treating obesity. Eli Lilly’s Recent Stock Success How did Eli Lilly’s stock price soar so much in the past few years? Let’s take a look at the numbers: Share Price Revenues* Net Income* 2016 $80.36 $21.22 $2.74 2017 $77.55 $19.94 ($0.21) 2018 $122.13 $21.49 $3.23 2019 $140.83 $22.32 $8.32 2020 $206.46 $24.54 $6.19 2021 $238.31 $28.32 $5.58 2022 329.07 $28.54 $6.25 2023 $745.91 $34.12 $5.24 *Revenue and Net Income in Billions Since 2016, Eli Lilly’s revenue grew by 60% but income grew by 91%. Typically you wouldn’t expect a company growing at its top line by 7% annually to see an 828% increase in share price, however, investor sentiment for the next line of drugs front ran the stock price. For example, in 2016 Eli Lilly was trading 13 times the trailing 12 months earnings and the market has increased its valuation each year and currently trades at a 125 times earnings multiple. This raises the valid question, is Eli Lilly overvalued or will future revenues make up for the expensive valuation? 3 Key Drivers of Eli Lilly Stock Innovated Drug Pipeline: The current drug pipeline is loaded with several very high-potential drugs in development. Mounjaro, Zepbound, and Jardiance in the cardiometabolic category, Taltz in immunology, and Verzenio in oncology are the future of Eli Lilly’s growth. While the aforementioned are the safer bets, the company has a handful of other drugs that could hold blockbuster potential. Strategic Acquisitions: The acquisition of Morphic, with its promising drug candidate MORF-057, is a testament to Lilly’s strategic vision. This drug, if successful in late-stage trials, could become a major success in the treatment of inflammatory bowel disease (IBD). Lilly’s focus on acquiring mid-sized companies (13 since 2020) with promising pipelines has bolstered its own research and development efforts, positioning it well for future growth. Operational Efficiency: With a sound balance sheet, Eli Lilly should continue to improve operational efficiency and manage costs to have net income growth rates above revenue growth. Eli Lilly (LLY) Stock Price Prediction in 2025 The current Wall Street consensus 1-year price target of Eli Lilly stock is $1030.00, which is 28.91% higher than today’s price of $799.00. Of the 26 analysts covering Eli Lilly stock, the current rating is 1.67 or “Outperform” with 1-year price targets as high as $1,100 and as low as $540.00. 24/7 Wall Street sets its 1-year price target at $1,040. Taking a look at the sum of its parts, we see Eli Lilly’s vertices valued as follows: Endocrinology $735/ share Oncology $122/ Share Cardiovascular $4/ Share Neuroscience $16/ Share Immunology $38/ Share Others and Pipeline $110/ Share Cash $17/ Share Eli Lilly’s Share Price Estimates 2025-2030 Valuing Eli Lilly’s stock price for the coming years, we will take a look at expected revenue and net income and give our best estimate of the market value of the company by assigning a price-to-earnings multiple. Revenue Net Income EPS 2025 $52.8 $17.29 19.11 2026 $62.5 $22.49 25.03 2027 $70.87 $27.12 30.39 2028 $80.68 $32.2 25.97 2029 $87.99 $36.45 40.58 2030 $96.67 $41.12 46.29 *Revenue and net income reported in billions How Eli Lilly’s Next 5 Years Could Play Out We expect Eli Lilly’s P/E ratio in 2025 to be 60 with an EPS of $19.11, resulting in a price target of $1140.00 This prediction is based on strong revenue growth of 18.37% to $52.80 billion and net income expansion to $17.29 billion, continuing the upward trajectory from previous years. For 2026, we anticipate a P/E ratio of 50 with an EPS of $25.03, leading to a price target of $1250.00. This reflects significant revenue growth of 18.37% to $62.50 billion and an increase in net income to $22.49 billion, driving higher earnings per share. Heading into 2027, we project the P/E ratio to remain at 50, with EPS increasing to $30.39. This results in a price target of $1520.00. Continued revenue growth of 13.39% to $70.87 billion and net income expansion to $27.12 billion justifies this substantial increase in stock price. With an EPS of $25.97 and a P/E ratio of 50 in 2028, we forecast the stock price to be $1300.00. A slight dip in EPS growth is expected, but sustained strong performance in net income to $32.20 billion and revenue growth of 13.84% to $80.68 billion keeps the stock highly valued. By 2029, we estimate Eli Lilly’s EPS to rise to $40.58, with the P/E ratio adjusting to 40. This gives us a price target of $1623.00. The continuous revenue growth of 9.06% to $87.99 billion and net income expansion to $36.45 billion supports this higher valuation. Eli Lilly Stocks Price Target for 2030 Price Target: $1850.00 Upside: 128.40% By 2030, we estimate Eli Lilly’s EPS to rise to $46.29, with the P/E ratio adjusting to 40. This gives us a price target of $1850.00. The continuous revenue growth of 9.86% to $96.67 billion and net income expansion to $41.12 billion supports this higher valuation. Year Price Target % Change From Current Price 2025 $1140.00 Upside of 42.68% 2026 $1250.00 Upside of 56.45% 2027 $1520.00 Upside of 90.24% 2028 $1300.00 Upside of 62.70% 2029 $1623.00 Upside of 103.13% 2030 $1850.00 Upside of 131.54% Cash Back Credit Cards Have Never Been This Good Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers. Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers. 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Dec 12, 2024 | 247wallst.com
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