Eli Lilly Stock Poised for Strong Growth as GLP-1 Boom Drives Value, Berenberg Upgrades to Buy

Eli Lilly is experiencing significant momentum driven by the success of its weight loss drugs, and the rally is just getting started, according to a recent analysis from Berenberg. The financial firm upgraded the pharmaceutical giant’s stock to a “buy” from “hold” and raised its price target to $1,400, suggesting a potential 23% upside from Monday’s close.

“Investor expectations for Lilly to maintain its lead in the fast-growing obesity market are undoubtedly high,” analyst Kerry Holford said in a note to clients. “We are confident in this and see upside to FY 2026 guidance. Meanwhile, the external pipeline investment that obesity success is fuelling remains underestimated.”

Over the past year, Eli Lilly’s shares have jumped 52%, driven by the growing use of GLP-1 receptor agonists for weight management. Lilly manufactures both Mounjaro, which aims to improve blood sugar control, and Zepbound, designed to treat patients with health conditions related to weight. The ongoing boom in this class of drugs is expected to continue driving value to the company, particularly as it introduces new GLP-1s with easier delivery methods.

“Although off to a slow start, we expect the imminent diabetes approval for Foundayo (oral GLP-1) to unlock significant demand,” Holford wrote. In addition to its flagship therapies, Eli Lilly has other drugs in its pipeline that could generate billions of dollars in revenue. “Many of the resulting new pipeline entrants have multibillion-dollar sales potential and offer important diversification optionality,” the analyst added.

Berenberg’s bullish call aligns with broader consensus on Wall Street. Of the 34 analysts covering Eli Lilly, 27 have a buy or strong buy rating on the stock, according to LSEG data. Shares rose more than 1% in the premarket following the upgrade.

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