-- Eli Lilly (LLY) reported strong Q1 results driven by GLP-1 drugs, with fundamentals remaining solid and pricing stabilizing, RBC Capital Markets said, while warning that volatility around its new drug Foundayo remains.
The company raised its full-year 2026 adjusted EPS outlook to $35.50 to $37 per share from $33.50 to $35 and reported Q1 results above expectations. RBC also lifted its full-year 2026 EPS forecast to $36.24 from $33.59 and increased its revenue estimate to $85.1 billion from $83.2 billion.
Foundayo has reached about 20,000 prescriptions so far. The investment firm said it is still too early to assess demand and expects data to remain volatile as the launch develops.
The brokerage said it was "encouraging" that Mounjaro prescriptions in India rose about 10% even after the entry of cheaper generics. It also noted that pricing trends have stabilized, with management reaffirming low-to-mid teens year-on-year declines.
RBC maintained its outperform rating and $1,250 price target, saying the stock remains undervalued given long-term growth prospects.
Price: $962.47, Change: $+27.87, Percent Change: +2.98%