Eli Lilly Stock Offers Buying Opportunity For Goldman Sachs. Concerns Over CVS Setback Are Overblown, Analysts Say

Group 1: Financial Performance - Eli Lilly reported Q1 2025 revenue of $12.73 billion, a 45$12.67 billion, driven by a 53% increase in volume, partially offset by a 6% decline in realized prices and a 2% unfavorable impact from foreign exchange rates [1] - Key Products revenue grew by $4.09 billion to$7.52 billion in Q1 2025, led by Mounjaro and Zepbound [1] - The company reaffirmed its fiscal year 2025 sales guidance of $58 billion to$61 billion, compared to a market consensus of $59.52 billion and$45.04 billion in 2024 [2] Group 2: Earnings Guidance - Eli Lilly lowered its 2025 adjusted EPS outlook from $22.50-$24.00 to $20.78-$22.28, compared to the street consensus of 21.93, reflecting the impact of Q1 2025 acquired IPR&D [2] Group 3: Market Dynamics and Analyst Opinions - Goldman Sachs analysts noted that Eli Lilly's Q1 2025 results were overshadowed by CVS Caremark's announcement to drop Zepbound in favor of Novo Nordisk's Wegovy, raising investor concerns about pricing dynamics in the anti-obesity medication market [3] - Goldman Sachs maintained a buy rating on Eli Lilly, viewing the company as a leader in the anti-obesity market, and suggested that recent selloffs in LLY shares present a buying opportunity [4] - BofA Securities highlighted Eli Lilly's reluctance to engage in "one-on-one" negotiations with insurers, asserting that Zepbound is a superior product [5] Group 4: Stock Performance - Following the news, LLY stock increased by 4.10% to 826.64 [6]