HSBC Downgrades Eli Lilly and Company (NYSE:LLY) to Reduce

Key Points

• HSBC downgraded Eli Lilly to "reduce" from "hold" and set a $850 target price, implying roughly a 13.95% downside from the prior close.
• Overall Street sentiment remains positive—MarketBeat shows a "Moderate Buy" consensus with a $1,221.44 average target—and Lilly recently beat Q results (EPS $7.54, revenue $19.29B) while guiding FY2026 EPS to 33.5–35.0.
• Notable risks cited include emerging oral GLP‑1 competitors and valuation concerns, which could pressure the stock despite strong fundamentals and high institutional ownership (~82.5%).

Eli Lilly and Company (NYSE:LLY - Get Free Report) was downgraded by research analysts at HSBC from a "hold" rating to a "reduce" rating in a research report issued to clients and investors on Tuesday, Marketbeat reports. They currently have a $850.00 target price on the stock. HSBC's target price indicates a potential downside of 13.95% from the company's previous close.

Several other research analysts have also recently issued reports on the company. National Bank Financial set a $1,286.00 price objective on Eli Lilly and Company in a research report on Monday, December 1st. Scotiabank restated an "outperform" rating and set a $1,300.00 target price on shares of Eli Lilly and Company in a research report on Thursday, February 5th. JPMorgan Chase & Co. upped their price target on shares of Eli Lilly and Company from $1,150.00 to $1,300.00 and gave the stock an "overweight" rating in a research note on Thursday, February 5th. Berenberg Bank raised their price objective on shares of Eli Lilly and Company from $950.00 to $1,050.00 and gave the company a "hold" rating in a research note on Thursday, February 19th. Finally, Sanford C. Bernstein restated an "outperform" rating on shares of Eli Lilly and Company in a research report on Tuesday, March 10th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $1,221.44.

Eli Lilly and Company Price Performance

Shares of LLY opened at $987.83 on Tuesday. Eli Lilly and Company has a twelve month low of $623.78 and a twelve month high of $1,133.95. The stock's 50 day moving average is $1,036.20 and its two-hundred day moving average is $954.12. The firm has a market capitalization of $933.32 billion, a PE ratio of 43.04, a P/E/G ratio of 1.15 and a beta of 0.40. The company has a current ratio of 1.58, a quick ratio of 1.19 and a debt-to-equity ratio of 1.54.

Eli Lilly and Company (NYSE:LLY - Get Free Report) last issued its earnings results on Wednesday, February 4th. The company reported $7.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.48 by $0.06. The business had revenue of $19.29 billion during the quarter, compared to the consensus estimate of $17.85 billion. Eli Lilly and Company had a return on equity of 102.94% and a net margin of 31.66%.The company's revenue for the quarter was up 42.6% on a year-over-year basis. During the same period in the prior year, the business posted $5.32 EPS. Eli Lilly and Company has set its FY 2026 guidance at 33.500-35.000 EPS. Research analysts anticipate that Eli Lilly and Company will post 23.48 earnings per share for the current year.

Institutional Trading of Eli Lilly and Company

Several institutional investors and hedge funds have recently modified their holdings of LLY. Maryland Capital Advisors Inc. acquired a new position in shares of Eli Lilly and Company during the 4th quarter worth approximately $25,000. Osbon Capital Management LLC acquired a new stake in Eli Lilly and Company during the 4th quarter valued at $25,000. Basso Capital Management L.P. purchased a new position in Eli Lilly and Company during the fourth quarter worth $30,000. Miller Global Investments LLC acquired a new position in shares of Eli Lilly and Company in the fourth quarter worth $33,000. Finally, E Fund Management Hong Kong Co. Ltd. raised its holdings in shares of Eli Lilly and Company by 342.9% in the fourth quarter. E Fund Management Hong Kong Co. Ltd. now owns 31 shares of the company's stock worth $32,000 after acquiring an additional 24 shares during the last quarter. Hedge funds and other institutional investors own 82.53% of the company's stock.

Trending Headlines about Eli Lilly and Company

Here are the key news stories impacting Eli Lilly and Company this week:

• Positive Sentiment: Wall Street bullishness: Several firms (including Bernstein/SocGen and mentions at Goldman) reiterated Outperform or high price targets (one cited $1,300), citing Lilly’s GLP‑1 leadership and the new Employer Connect program to broaden access to obesity meds. Wall Street Firms Turn Bullish on Eli Lilly and Company (LLY) Buoyed by GLP-1 Medication Expansion Plans
• Positive Sentiment: Clinical/regulatory upside — EBGLYSS (lebrikizumab) Phase 3 pediatric topline: strong skin‑clearance and itch relief in children (6 months–18 years), supporting potential label expansion and strengthening Lilly’s immunology/dermatology growth story. Lilly's EBGLYSS (lebrikizumab-lbkz) is the first and only selective IL-13 inhibitor to deliver positive Phase 3 outcomes...
• Positive Sentiment: Capacity and market expansion: Reuters/Yahoo report that Lilly plans ~$3 billion investment in China over the next decade to build production capacity for orforglipron (oral GLP‑1), which could ease supply constraints if approved and support global rollout. Eli Lilly (LLY) to Invest $3 Billion in China Over the Next Decade, Reuters Reports
• Neutral Sentiment: Share structure chatter: Commentary that LLY could be a candidate for a future stock split (given high absolute price and growth) keeps the name on retail radars but is not an immediate fundamental change. 3 Stocks That Could Be Next to Announce a Stock Split (LLY)
• Neutral Sentiment: Congressional buying: Disclosed purchases by a member of Congress add anecdotal interest but are delayed disclosures and not a direct catalyst. Members of Congress Bought These 5 Stocks—Should You?
• Negative Sentiment: Emerging competitive risk — Structure Therapeutics and others reported strong midstage oral GLP‑1 weight‑loss results that at times rival injectables; market reaction to those data and speculation about takeover candidates increase competitive uncertainty for Lilly’s obesity franchise. Structure Weight-Loss Pill Results Rival Novo, Lilly Treatments
• Negative Sentiment: Valuation concerns: Commentary (The Motley Fool and others) warns that a high multiple and heavy bullish expectations leave LLY exposed to downside if growth or margin assumptions slip. Is There Too Much Bullishness Priced Into Eli Lilly's Stock Price?

About Eli Lilly and Company

Eli Lilly and Company NYSE: LLY is a global pharmaceutical company founded in 1876 and headquartered in Indianapolis, Indiana. The company researches, develops, manufactures and commercializes a broad range of medicines and therapies for patients worldwide. Eli Lilly maintains operations and commercial presence across North America, Europe, Asia and other regions, serving both developed and emerging markets. The company has been led in recent years by President and Chief Executive Officer David A.

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