Eli Lilly Diabetes Drug Franchise Remains Strong, Analyst Praises Foundayo Trajectory

As Eli Lilly And Co (NYSE:LLY) prepares to report third-quarter results in late October, Guggenheim analyst Seamus Fernandez maintains a Buy rating, with a raised price target from $1,273 to $1,284. While the company’s U.S. tirzepatide franchise remains strong, Fernandez says Foundayo’s trajectory is promising, with improving prescription-drug trends. The Eli Lilly Thesis: The company is likely to generate significantly higher revenues and earnings than current consensus estimates reflect, the analyst wrote in a research note. Fernandez expects Eli Lilly to report: Product sales of $22.617 billion, beating consensus of $22.184 billion Earnings of $9.82 per share, versus consensus of $9.85 per share Check out other analyst stock ratings. For 2026, 2027, and 2028, Fernandez forecasts product sales and earnings of: $89.208 billion and $37.11 per share versus consensus of $88.292 billion and $36.41 per share $102.107 billion and $47.18, per share compared to consensus of $101.856 billion and $46.70 per share $114.256 billion and $54.41 per share versus consensus of $113.767 billion and $53.60 per share "We have updated our model to reflect updated Rx trends, management commentary, and currency impact," Fernandez wrote. He added that the key impacts include: Higher US Mounjaro estimates for 2027 and 2028 Higher US Zepbound estimates in 2026 and beyond Higher Foundayo estimates for 2027 and 2027 These estimates have been raised to reflect stronger Rx trends offset by a likely decline in average selling prices, the analyst stated. "On Foundayo, we maintain our 2026 estimates despite factoring in the lowered price for the 2.5mg dose through the balance of the year — this reflects the product’s improved Rx trajectory," Fernandez wrote. The Foundayo estimates for 2027 and 2028 had been raised from $1.2 billion to $1.8 billion and from $2.4 billion to $3.7 billion, respectively, based on "early but improving launch trends." "In all, our modeling suggests LLY is comfortably set up to beat its last-issued 2026 sales guidance," the analyst further stated. LLY Price Action: Shares of Eli Lilly had declined by 0.30% to $1,148.97 at the time of publication on Friday. Read Also: EMA Committee Endorses Novo Nordisk's Hemophilia A Therapy Image: Shutterstock