Eli Lilly Stock Strengthens as Bernstein Reaffirms Outperform Rating on Expanding GLP-1 Pipeline and Long-Term Growth Strategy
Eli Lilly, one of the most valuable pharmaceutical companies globally, continues to attract Wall Street’s attention. Bernstein SocGen Group reaffirmed its Outperform rating with a price target of $1,300 per share. This endorsement highlights Lilly’s strong presence in the growing GLP-1 drug market, its ongoing pipeline expansion, and its leadership in therapies for obesity and metabolic diseases.
The $1,300 price target, which represents about 31% upside from the current trading price near $993.64, shows continued investor confidence in Lilly’s incretin portfolio. With the company positioned at the centre of the fast-growing weight-loss drug industry, analysts believe Eli Lilly’s growth trajectory stands out among the top pharmaceutical stocks for 2025.
[expander_maker id=”1″ more=”Read more” less=”Read less”]As demand for GLP-1 therapies like Zepbound and Mounjaro surges, the company is committed to its long-term strategy. Lilly is investing billions in manufacturing, research, and clinical trials to expand the use of incretins beyond obesity into new areas like mental health, asthma, addiction, and chronic pain.
This strategic diversification has made Eli Lilly an attractive target for investors looking for high-growth biotech opportunities.
Bernstein Highlights Broad GLP-1 Expansion Beyond Obesity Treatment
In their latest research note, Bernstein analysts highlighted that Eli Lilly is “structurally positioned for long-term leadership” due to its proactive strategy to expand the total addressable market (TAM) for incretin medications.
The report points out several breakthroughs:
- GLP-1 use beyond weight loss
Lilly is exploring incretin therapies for:
- Alcohol use disorder
- Asthma and pulmonary diseases
- Smoking cessation
- Mental health disorders, such as Major Depressive Disorder and Bipolar Disorder
This marks a shift from the public perception of GLP-1 drugs as just “weight-loss injections.” Lilly is positioning incretins as versatile therapeutic technologies.
- Brenipatide: A next-generation incretin candidate
Bernstein specifically mentioned Lilly’s new drug, Brenipatide, aimed at:
- CNS-specific health outcomes
- Neuropsychiatric conditions
- Potential applications in metabolic-brain interaction disorders
This expands beyond the current cardiometabolic focus of popular GLP-1 drugs, opening up new high-value healthcare markets.
Why Analysts Remain Bullish: Dominance in the GLP-1 Weight-Loss Drug Market
Eli Lilly’s GLP-1 products have reshaped modern medicine. Their weight-loss drug, Zepbound (tirzepatide), is now among the most in-demand medications worldwide. Increased supply, along with new FDA approvals, has spurred a 45.41% revenue surge over the past twelve months.
The global obesity drug market, currently worth about $100 billion annually, is expected to reach $250–$500 billion by 2030, making it one of the most profitable healthcare segments in decades.
Lilly’s leadership in incretins is driven by:
- Significant manufacturing expansion
Billions invested in U.S. production to meet high demand.
- Diverse pipeline
Multiple next-generation GLP-1 and dual-hormone therapies in Phase 2 and Phase 3 trials.
- Broad market applicability
Including obesity, diabetes, mental health, addiction treatment, and neurological disorders.
- Strong financial fundamentals
With a market cap of nearly $890 billion, a “GREAT” InvestingPro financial health score, and a PEG ratio of 0.4, indicating strong value relative to earnings growth.
These factors make Eli Lilly one of the best long-term biotech stocks to buy and hold.
GLP-1 Drugs: Lilly’s Key to Dominating the Future of Healthcare
GLP-1 and incretin-based therapies have transformed treatments for:
- Obesity
- Type 2 diabetes
- Cardiovascular risks
- Liver disease
- Metabolic disorders
However, Lilly’s scientific vision goes beyond these areas.
Next-Generation Applications Expected to Boost Long-Term Revenue
Clinical researchers now believe GLP-1 drugs may have an impact on:
- Reward pathways (for addiction therapy)
- Neuroinflammation (related to psychiatric disorders)
- Lung hyperresponsiveness (asthma)
- Chronic pain and mobility issues
If even a portion of these applications succeeds, analysts estimate Lilly’s market could reach $1 trillion over the next twenty years.
This explains why Bernstein and most major brokerages maintain a strong Buy and Outperform rating for the stock.
Stock Outlook: What the $1,300 Price Target Means for Investors
Bernstein’s optimistic outlook aligns with the overall consensus:
- Average analyst rating: Buy (1.77)
- Price targets range: $770 to $1,500
- Projected upside: 30%–50% in the coming years
With the high demand for weight-loss solutions and a global shortage of GLP-1 supply, Eli Lilly is expected to enjoy significant revenue visibility over several years, which is a rarity in the pharmaceutical industry.
Valuation Metrics
- Current P/E: 48.7
- PEG ratio: 0.4
- Market cap: ~$890 billion
- Revenue growth: 45% year over year
Despite the high valuation, the company’s earnings growth, market leadership, and protected pipeline support Lilly’s elevated trading multiple.
Eli Lilly may soon become the first trillion-dollar pharmaceutical company, surpassing even Novo Nordisk in the incretin market.
Major Developments Supporting the Bull Case
In addition to analyst upgrades, Eli Lilly has announced significant developments in manufacturing, clinical trials, and corporate governance.
- Retatrutide Delivers Breakthrough Phase 3 Results
In a Phase 3 trial for obesity and knee osteoarthritis:
Patients on 12 mg retatrutide lost an average of 28.7% body weight over 68 weeks.
This resulted in a significant reduction in knee pain and improved physical function.
This makes retatrutide one of the strongest weight-loss drugs ever studied, solidifying Lilly’s leadership.
- $6 Billion Investment in New Alabama Manufacturing Plant
The new Huntsville facility will:
- Increase GLP-1 drug production
- Create 450 permanent jobs
- Generate 3,000 construction jobs
- Support long-term capacity for global supply
This expansion ensures Lilly stays ahead of Novo Nordisk in meeting soaring global demand.
- Jaypirca Shows 80% Reduction in Disease Progression Risk
Lilly’s cancer drug Jaypirca has shown significant success in untreated chronic lymphocytic leukaemia (CLL). This marks a major step in expanding its oncology portfolio.
- Quarterly Dividend Declared for 2026
The board approved a $1.73 dividend for Q1 2026, showing an ongoing commitment to shareholder returns.
- Nobel Laureate Joins Lilly’s Board
Nobel Prize winner Carolyn R. Bertozzi has returned to the board, bringing top-notch expertise to the Science & Technology and Ethics committees.
Her knowledge in chemical biology will enhance the company’s research innovation.
Long-Term Growth Outlook: Can Lilly Maintain Its Dominance?
Experts believe Lilly is well-positioned to lead the obesity and metabolic disease market for at least the next decade—especially with its broad and deep incretin pipeline.
Key long-term advantages include:
- First-mover advantage in multi-hormone incretins
- Diverse pipeline beyond weight loss
- Aggressive manufacturing expansion
- Strong balance sheet and earnings growth
- High barriers to entry for competitors
Analysts expect increasing global adoption of GLP-1 medications, allowing Eli Lilly to maintain its lead through 2035 and beyond.
Conclusion: Eli Lilly Remains One of the Best Pharmaceutical Stocks for 2025 and the Next Decade
Bernstein’s reaffirmed Outperform rating and $1,300 price target confirm Eli Lilly’s position as a top biotech stock for long-term growth, driven by its expanding GLP-1 pipeline and strong financial results.
With:
- Multi-disease incretin applications
- Breakthrough Phase 3 clinical results
- Large manufacturing investments
- Strategic leadership
- Rapid revenue growth
Eli Lilly continues to shape the future of obesity therapy, metabolic treatments, and pharmaceutical innovation.
For investors looking for high-growth healthcare markets, LLY remains a compelling opportunity in 2025.
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