Jefferies Sees Huge Potential in Eli Lilly's (LLY) New Weight-Loss Pill

Eli Lilly and Company (NYSE:LLY) is one of the top 10 mega-cap stocks to buy according to hedge funds.. Eli Lilly and Company (NYSE:LLY) is stirring up major excitement on Wall Street with its upcoming weight-loss pill, Orforglipron. Jefferies analyst Akash Tewari believes the drug could generate over $10 billion in yearly sales once it hits the market in 2026. Tewari is projecting that peak annual sales could eventually climb to a staggering $25 billion. To put that in perspective, Eli Lilly generated $45.04 billion in revenue in the previous fiscal year.

That’s more than what Novo Nordisk made from Ozempic in 2024, and more than double the sales of Lilly’s own diabetes drug Mounjaro. The key difference? Orforglipron is a pill and not an injection, which could attract a huge number of people who want easier, needle-free weight-loss options.

Lilly recently said it has finished collecting all the trial data needed to apply for FDA approval. If the approval comes through as expected in the first half of 2026, the company plans to launch the pill globally that summer.

The stock has underperformed the market over the last year, falling by nearly 25% since it peaked in August of last year. Tough competition from Novo Nordisk and lofty valuation were the primary drivers of the decline. Despite the decline, the stock still trades at a forward P/E of 48.25x, a much higher premium compared to its pharma peers.

While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.