Eli Lilly Stock Faces Wall Street Downgrades Amid High Growth Expectations

Eli Lilly's stock (LLY) has been hit with multiple downgrades from Wall Street analysts, signaling caution despite the pharmaceutical giant's strong market position. TD Cowen adjusted its price target downward to $960 from $1,050, maintaining a Buy rating but trimming 2026 EPS estimates by $0.25 to $29.15. The stock's lofty price-to-earnings ratio of 62 reflects sky-high growth expectations, particularly for its Zepbound weight-loss drug.

Erste Group followed suit, downgrading LLY to Hold without specifying a price target. The MOVE underscores broader concerns about earnings sustainability, even as demand for Eli Lilly's flagship treatments continues to surge. Analysts remain divided on whether current valuations properly account for both the company's pipeline potential and execution risks.