Eli Lilly (LLY) shares have pulled back about 8% in recent weeks, after rising 41% over the past 12 months. The article attributes the decline mainly to investors taking profits after a 50% gain in less than four months that pushed the stock to an all-time high in August. U.S. prices for its products fell 3% year over year due to Zepbound and Mounjaro, or 9% excluding rebates and discounts, and the stock trades at 38.6 times trailing earnings versus 23.6 for the S&P 500. The author argues that overwhelming demand for these drugs will keep sales rising, and that over the past 10 years the stock fell by at least 8% more than 20 times yet still returned more than 14x. Of 23 analysts rating the stock over the last three months, 20 recommend buy or better, with a consensus target implying around 16% upside.
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