Goldman Sachs Raises Eli Lilly Price Target
The investment bank increases its 12-month outlook for Eli Lilly stock to $1,413.
Updated on Oct. 23, 2026 in Economic Indicators
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Goldman Sachs increased its 12-month price target for Eli Lilly to $1,413 from $1,371, citing robust demand for its key pharmaceutical products. The firm maintained a Buy rating on the stock as it anticipates continued growth in the company's core medication portfolio.
Why it matters
The upward revision reflects strong market interest in Eli Lilly's products, including Mounjaro, Zepbound, and Foundayo. This valuation increase relies on a 28x forward earnings multiple as the company prepares for upcoming quarterly reporting.
Goldman Sachs projects third-quarter revenue to reach $23.1 billion. The analyst team also modeled earnings per share projections spanning 2026 through 2028.
The players
Goldman Sachs
Goldman Sachs is a leading global investment banking, securities, and investment management firm that provides financial services to a wide range of clients.
Eli Lilly
Eli Lilly is a global pharmaceutical company headquartered in Indianapolis that develops and markets medicines for various therapeutic areas.
The details
The firm's analysis centers on high demand for GLP-1 and related therapies, noting that 1.1 million patients have been reached through the Medicare Zepbound program. Eli Lilly also reported $23 billion in second-quarter revenue and $65.2 billion in total revenue for 2025.
Timeline
July 1 marked the start of Medicare coverage for Zepbound.
Eli Lilly lowered Foundayo prices on September 1.
The company is scheduled to report earnings on October 29.
An investor event is planned for December 7.
Management will provide 2027 guidance during an investor call in January.
Macro View
The valuation adjustment follows the implementation of the Medicare Zepbound coverage program, which serves as a critical growth catalyst for major pharmaceutical firms. This shift underscores the high correlation between government-subsidized access and long-term equity performance in the healthcare sector.
The stock target adjustment highlights the significant impact of Medicare formulary decisions on the broader pharmaceutical market and potential drug availability. Investors monitoring healthcare portfolios should watch for official company guidance updates scheduled for early next year.
The takeaway
Investors should note that equity valuation shifts in the pharmaceutical sector are currently highly dependent on Medicare coverage breadth. Maintaining awareness of upcoming investor events can help gauge the sustainability of recent revenue growth trends.
What happens next
Eli Lilly will report its next earnings results on October 29 and host an investor event on December 7.
Further reading
For broader market trends, explore the Economic Indicators section.
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