Eli Lilly Gets Wall Street Backing After Tuesday’s Turmoil, Stock Rises Premarket As Retail Stays Bullish

Eli Lilly & Co. (LLY) shares rose 0.3% premarket Wednesday, bouncing slightly after Tuesday's steep 6% plunge — the worst session for the stock in nearly four years. 

The selloff followed the drugmaker's disappointing fourth-quarter (Q4) revenue guidance, with significant misses in sales for its blockbuster weight-loss and diabetes drugs, Mounjaro and Zepbound.

However, several Wall Street analysts expressed optimism, suggesting the dip could offer an attractive entry point for investors.

Leerink noted Lilly lowered its Q4 revenue guidance by 5% but issued a 2025 revenue forecast 2% above its consensus, according to The Fly. The brokerage maintained its 'Outperform' rating, citing long-term growth potential and a promising pipeline.

BofA Securities reiterated a 'Buy' rating with a $997 price target, according to Investing.com. Analyst Tim Anderson emphasized that despite short-term challenges, Lilly remains a dominant player in the "diabesity" market with significant growth opportunities.

JPMorgan's Chris Schott reportedly called the stock dip following the Q4 sales miss a buying opportunity, highlighting Lilly's strong 2025 positioning, expanded market presence, and anticipated 60% growth in sellable doses of incretins in the first half of 2025.

Mizuho's Jared Holz told CNBC that "some of the supply commentary from the company makes a lot of sense" and highlighted the nascent stage of the obesity market. However, he flagged valuation as a concern, with Lilly trading at 32 times 2025 earnings estimates—higher than most large-cap pharma peers.

Retail message volume on Stocktwits about Lilly jumped over 240% on Tuesday. 

Heading into Wednesday, sentiment on the platform remained 'bullish,' as watchers took cues from analyst optimism and kept faith in long-term prospects for Lilly's weight-loss and diabetes drugs remain intact.

Eli Lilly's stock is down 4.5% year-to-date but has gained over 16% in the past 12 months. The company will report fourth-quarter and full-year results next month. 

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