Eli Lilly’s stock plummeted over 6% on January 14 after announcing slower-than-anticipated growth in its obesity drug sales. The company reduced its Q4 revenue forecast by 5%, falling short of analysts’ estimates. Despite this, Eli Lilly projects a 32% growth in full-year revenues for 2024, reaching $45 billion.
The decline in stock was met with skepticism from investors, who may be too hasty to sell. However, the company’s outlook for 2025 is solid, with expected revenues ranging from $58 billion to $61 billion, representing a 32% growth at the midpoint. This surpasses analysts’ estimates.
Eli Lilly has enjoyed a stellar run in recent years due to high demand for its obesity and diabetes medications. The company has an expansive pipeline, including drugs under clinical trials in different therapeutic areas. Another weight-loss drug, orforglipron, may receive regulatory approval as early as next year, further boosting sales.
The Trefis High-Quality portfolio has consistently outperformed the S&P 500 over the last four years, generating better returns with less volatility. With a solid 2025 outlook and strong expected growth, Eli Lilly’s current dip in stock presents an opportunity for long-term investors. Analysts’ price estimates reflect over 30% upside from current levels.
Source: https://www.forbes.com/sites/greatspeculations/2025/01/15/buy-sell-or-hold-lly-stock-at-750