Eli Lilly Stock Valuation Forecast

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Eli Lilly Stock Valuation Forecast

Eli Lilly Stock Could Reach $2 Trillion Valuation

Analysts believe that Eli Lilly (LLY) stock has the potential to reach a valuation of $2 trillion by 2031. Just touching the $1 trillion market cap is a feat in itself, but analysts are forecasting the $2 trillion figure.

Based on this forecast, we can also expect a lot of upside in Eli Lilly (LLY) stock. But to achieve this goal, Eli Lilly (LLY) will need to grow at a 12.3% CAGR.

Eli Lilly (Lly) - A Big Player In Weight Loss Market

However, some people think that the good performance of the company is already priced into the Eli Lilly stock. After all, Eli Lilly (LLY) stock is trading at 33.3x of its forward earnings, while the industry average is only 18.1

Also, the company will need to deliver great results over the next 5-6 years. That's the only viable way for Eli Lilly (LLY) stock to reach a market cap of $2 trillion.

Meanwhile, we must also consider the fact that many investors will also try to cash out their profits. This will become a reality if the stock price reaches new highs.

quick look at Eli Lilly (LLY) shows that it is a major player in the weight loss category. They sell drugs that are used to treat diabetes and obesity.

The brands owned by Eli Lilly (LLY) are experiencing massive sales growth, which is also contributing to higher profits. And looking ahead, Eli Lilly (LLY) has several other drugs in the pipeline, which will further boost the revenue.

The next big thing for Eli Lilly (LLY) is its oral GLP-1 medicine that is very close to getting regulatory approval. So once that happens, Eli Lilly (LLY) will have one more drug bringing a lot of revenue.

So even if Eli Lilly (LLY) doesn't hit the $2 trillion mark, it is still a buy nonetheless! The drugs they make are in high demand, and the company also has a lot of potential products in the pipeline.

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