Barclays Initiates Overweight on Eli Lilly, Sets $1,350 Target
Barclays initiated coverage on Eli Lilly with an Overweight rating and $1,350 price target, citing GLP-1 weight-loss treatments as a durable structural shift in obesity. A late-stage trial of 274 patients combining Zepbound and Taltz saw 27.1% achieve full skin clearance and ≥10% weight loss versus 5.8% on Taltz alone.
1. Barclays Begins Coverage
On February 20, Barclays initiated coverage of Eli Lilly with an Overweight rating, marking the first analyst report on the company’s obesity portfolio. The firm highlighted Lilly’s leadership in GLP-1 weight-loss treatments and the expected durability of demand for these therapies.
2. Premium Valuation and Structural Shift
Barclays set a $1,350 price target on Eli Lilly shares, arguing the stock warrants a premium valuation given its market-share leadership in the fast-growing obesity category. Analysts cited a ‘‘durable structural shift’’ toward GLP-1 therapies as the key driver for long-term growth.
3. Combination Therapy Trial Results
A late-stage study of 274 psoriasis patients evaluated the combination of Zepbound and Taltz, with 27.1% achieving complete skin clearance plus ≥10% weight loss versus 5.8% for Taltz alone after 36 weeks. Side effects were generally mild to moderate, and full results will be submitted for peer review and regulatory review.