Barclays Begins Coverage on Eli Lilly (LLY), Sees Strong Position in Obesity Market

Eli Lilly and Company (NYSE:LLY) is included among the 14 Best Low Volatility Dividend Stocks to Invest in.

On February 20, Barclays initiated coverage of Eli Lilly and Company (NYSE:LLY) with an Overweight rating. The firm set a $1,350 price target on the stock. The firm said GLP-1 weight loss treatments represent a “durable structural shift,” reflecting growing confidence in the long-term demand for these therapies. The analyst added that Eli Lilly is well-positioned to remain the market share leader in obesity, and Barclays believes the stock deserves a premium valuation given its strong position in this fast-growing category.

Just two days earlier, on February 18, Eli Lilly shared encouraging results from a late-stage study involving its weight-loss drug Zepbound and psoriasis treatment Taltz. The company said patients who received both treatments saw better outcomes than those who were treated with Taltz alone. The study included 274 patients and showed clear improvements in both skin symptoms and weight loss. About 27.1% of patients who received the combination of Taltz and Zepbound achieved complete skin clearance along with at least 10% weight loss. In comparison, only 5.8% of patients treated with Taltz alone reached the same results after 36 weeks. The study met its main goal, highlighting the potential benefit of combining the two therapies.

Psoriasis is a chronic condition that causes itchy, scaly patches on the skin and can be difficult to manage, especially in sensitive areas. Lilly noted that nearly all participants in the trial had psoriasis affecting areas such as the face, scalp, or genitals, which are often harder to treat effectively. The company also pointed to the broader connection between psoriasis and weight-related health issues. In the United States, about 61% of people with psoriasis are either obese or overweight and have at least one related health condition. This overlap creates an opportunity for treatments that address both issues at the same time.

Lilly said side effects reported during the study were generally mild to moderate. The company plans to publish the full results in a peer-reviewed journal and share the findings with regulators as part of the next steps.

Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company focused on discovering, developing, manufacturing, and selling medicines for a wide range of health conditions.