Berenberg upgrades Eli Lilly to "Buy," raises price target to $1,400

Berenberg upgraded Eli Lilly from "Hold" to "Buy" and raised its target price from $1,220 to $1,400, citing the company's leading position in the obesity drug market and returns on R&D investment as continuing to support growth, implying roughly 25% upside from the current share price. The firm noted that Eli Lilly's Zepbound and Mounjaro have become leading products in the obesity and diabetes treatment fields, the Medicare Bridge program is further driving demand for obesity drugs, and the upcoming oral GLP-1 drug Foundayo for diabetes treatment is expected to unlock new market demand. Berenberg also believes there is room for upward revision to Eli Lilly's fiscal 2026 guidance. The company has so far invested approximately $60 billion across more than 25 business development deals, and Berenberg said multiple programs in the related newly added pipeline have multi-billion-dollar sales potential, which could further reduce the company's reliance on its existing core weight-loss and diabetes products.