Eli Lilly (LLY) Stock: Morgan Stanley Holds Bullish Stance as Weight-Loss Drug Demand Surges

Key Takeaways

• Morgan Stanley maintains Overweight rating on Eli Lilly (LLY) stock with $1,313 price objective
• Mounjaro prescriptions reached ~724,500 weekly, rising from ~705,300 previously
• Zepbound weekly scripts surged to ~598,100 from ~500,900 in prior week
• Eli Lilly commands approximately 60% of weekly new prescription market share in GLP-1 category
• Fourth quarter EPS of $7.54 exceeded expectations, with revenue climbing 42.6% annually

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Eli Lilly’s leading weight management and diabetes medications, Mounjaro and Zepbound, demonstrated continued prescription volume increases during the week concluded February 27, 2026, based on IQVIA metrics referenced by Morgan Stanley analysts.

Eli Lilly and Company, LLY

Mounjaro’s total weekly prescriptions climbed to approximately 724,500, representing an uptick from the previous week’s 705,300. Fresh Mounjaro prescriptions numbered roughly 361,600, versus 352,700 in the preceding week.

Zepbound demonstrated even more pronounced momentum. Weekly prescription totals reached approximately 598,100, jumping significantly from 500,900 the prior week. New prescriptions advanced to 328,300 from 298,600.

Morgan Stanley maintained its Overweight stance on LLY shares while reaffirming the $1,313 price objective. The investment firm projects approximately 7% potential upside to its 2026 projections for both medications.

Aggregated GLP-1 prescription volumes for Eli Lilly and Novo Nordisk expanded roughly 30% on a year-over-year basis, indicating sustained robust demand throughout the therapeutic category.

Eli Lilly’s complete GLP-1 portfolio — encompassing Mounjaro, Zepbound, and Trulicity — captured approximately 60% of new weekly prescription market share, edging higher from 59% the previous week.

Financial Performance and Results

LLY delivered fourth quarter earnings per share of $7.54, surpassing the analyst consensus estimate of $7.48 by $0.06. Quarterly revenue reached $19.29 billion, substantially exceeding the $17.85 billion projection. This represented a 42.6% increase compared to the year-ago period.

The pharmaceutical giant established fiscal year 2026 earnings guidance in the $33.50–$35.00 per share range. The quarter’s net profit margin came in at 31.66%, while return on equity measured 102.94%.

Lilly increased its quarterly dividend payment to $1.73 from $1.50. The annualized dividend now totals $6.92, representing approximately 0.7% yield.

Shares commenced Friday trading at $982.85. The 52-week trading range extends from $623.78 to $1,133.95. The 50-day moving average currently rests at $1,047.37, while the 200-day average stands at $937.23.

Wall Street Coverage and Institutional Holdings

Institutional investors hold 82.53% of LLY shares outstanding. Several investment firms expanded their positions throughout Q3 2026, including KCM Investment Advisors, which increased holdings by 14%, and M1 Capital Management, which grew its stake by 10.8%.

Integrity Advisory Solutions initiated a fresh position valued at approximately $1.07 million during the reporting period.

The aggregate analyst sentiment registers as “Moderate Buy” with a mean price target of $1,229.59. Wells Fargo elevated its price objective to $1,280 alongside an Overweight rating. Jefferies boosted its target to $1,300 while maintaining a Buy recommendation. Royal Bank of Canada initiated coverage with an Outperform rating and $1,250 target.

Seven sell-side analysts revised earnings projections upward following the fourth quarter earnings release.

Eli Lilly additionally introduced its “Employer Connect” initiative, created to assist corporate employers in providing coverage for obesity therapeutics, including Zepbound, featuring a $449 single-patient KwikPen pricing alternative.

Orforglipron, the company’s oral GLP-1 development candidate, outperformed oral semaglutide in a Type 2 diabetes clinical study across both primary and secondary efficacy measures.

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