Eli Lilly (LLY) is "a clear leader in obesity" and is in a good position to see its market share grow in Q2 due to its diabetes and obesity drug pipeline, according to analysts at UBS.
In a note to clients Friday, UBS analysts said investors in the pharmaceutical giant are "bracing for a 3Q impact" when CVS Caremark updates the list of prescription drugs covered by its insurance plans in July. The analysts said CVS prefers Wegovy made by Novo Nordisk (NVO) for certain plans.
UBS raised its forecast for Eli Lilly's full-year 2025 revenue and EPS. It now expects revenue of $60.6 billion, compared with its previous estimate of $59.4 billion, and EPS of $22.21 from $21.83.
UBS maintained its buy rating and $1,050 price target on Eli Lilly's stock.
Price: 798.90, Change: +3.78, Percent Change: +0.48