Bernstein reaffirmed an Outperform rating on Eli Lilly and kept a $1,300.00 price target following the company’s fourth-quarter financial report. The research house pointed to robust quarterly results and upcoming product launches as justification for its stance.
Eli Lilly’s fourth-quarter performance exceeded market expectations on multiple fronts. Revenue surpassed forecasts by 7.1% while earnings per share outstripped estimates by 12.0%. Management’s guidance accompanying the report was favorably received by investors, and the stock jumped 10.3% in response.
At Bernstein, analyst Courtney Breen underscored the significance of Lilly’s results in light of recent competitive developments. The firm noted that the company’s quarterly outperformance helped to offset market concerns that had surfaced after a disappointing pre-release from a peer, and that Lilly’s update restored investor confidence.
Looking ahead, Bernstein singled out the launch of orforglipron - referred to as Orfo - as a pivotal catalyst. The research firm projects incretin therapies will account for $25 billion of Eli Lilly’s portfolio by 2026, and described 2026 as "the year of Orfo execution" for the company. Bernstein also emphasized that Lilly’s pipeline extends beyond incretin treatments, pointing to a broader mix of products supporting the company’s outlook.
Several other sell-side firms adjusted their outlooks on Lilly after the fourth-quarter disclosure. JPMorgan raised its price target to $1,300, citing significant growth potential in the obesity and type 2 diabetes markets. BMO Capital Markets also lifted its target to $1,300, highlighting Lilly’s leadership within the incretin category. TD Cowen maintained a Buy rating with a $1,250 price target, noting that the company’s revenue and earnings per share came in ahead of expectations. Truist Securities increased its price target to $1,281 and pointed to growth potential for Lilly’s obesity and diabetes treatments, including the planned orforglipron launch in 2026.
Other industry developments reported alongside these analyst moves included a product rollout from Hims and Hers. The company announced compounded semaglutide pills priced at $49 for an initial month and $99 for each subsequent month. TD Cowen retained its Hold rating and a $30 price target on Hims and Hers, noting the company faces hurdles in securing partnerships with major GLP-1 manufacturers such as Novo Nordisk and Eli Lilly.
In aggregate, the analyst commentary and price-target revisions reflect renewed investor enthusiasm for Lilly following the quarter, with particular emphasis on the commercial prospects for incretin-based therapies and the execution of forthcoming launches. Market participants and research firms appear to be aligning around a narrative that Lilly’s recent results and pipeline timing support elevated expectations.
That said, observers continue to monitor execution timelines and competitive dynamics as key variables that will determine whether the anticipated growth materializes according to current projections.