Eli Lilly and Firm (LLY): A Bull Case Principle

We got here throughout a bullish thesis on Eli Lilly and Firm on Kontra Investments’s Substack by Kontra. On this article, we’ll summarize the bulls’ thesis on LLY. Eli Lilly and Firm’s share was buying and selling at $724.54 as of September twenty sixth. LLY’s trailing and ahead P/E have been 47.36 and 24.04 respectively in keeping with Yahoo Finance.

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Few firms have captured investor consideration like Eli Lilly, which has emerged because the chief within the weight problems therapy megatrend, powered by its injectable therapies Mounjaro and Zepbound. The latest Part 3 ATTAIN-2 trial of orforglipron, Lilly’s oral GLP-1 candidate, represents a pivotal milestone, demonstrating 10.5% complete weight reduction at 72 weeks in sufferers with weight problems and sort 2 diabetes—akin to semaglutide—whereas providing the comfort of an oral tablet.

This validates orforglipron’s scientific profile and considerably expands the industrial alternative past Lilly’s injectables, as oral formulations are anticipated to drive broader adoption in major care and seize sufferers reluctant to provoke injections. Strategically, orforglipron enhances Lilly’s present portfolio, making a full-spectrum therapy ecosystem from oral to injectable therapies, strengthening affected person retention and market share. The corporate’s broader weight problems technique emphasizes depth with extremely efficient twincretins, breadth with oral and pipeline property, and sturdiness by way of substantial manufacturing investments.

Current prescription developments present Lilly sustaining management in weight problems therapies, with Zepbound prescriptions rising and starter doses stabilizing after formulary shifts, highlighting a aggressive however sustainable setting. Regardless of buying and selling at premium multiples of twenty-two–23x ahead earnings, valuation is supported by robust projected income development, increasing gross margins, excessive returns on invested capital, and accelerating money movement, with web debt anticipated to show into web money by 2026.

Dangers embrace pricing pressures, manufacturing bottlenecks, and pipeline uncertainties, however the validated orforglipron launch and layered portfolio improve long-term development visibility. Total, Lilly’s strategic positioning in weight problems, coupled with a diversified, sturdy portfolio, positions the corporate for sustained double-digit development, providing compelling long-term funding potential.

Beforehand we coated a bullish thesis on Eli Lilly and Firm (LLY) by Kontra in Might 2025, which highlighted the corporate’s management in weight problems and diabetes therapeutics, robust income development from Mounjaro and Zepbound, and near-term pipeline catalysts. The corporate’s inventory worth has depreciated roughly by 8.75% since our protection. The thesis nonetheless stands as Lilly’s long-term development stays strong. Kontra shares an analogous perspective however emphasizes the ATTAIN-2 outcomes for orforglipron, highlighting the strategic worth of oral GLP-1s in increasing adoption and strengthening Lilly’s weight problems portfolio.