Wolfe Research Says Market Reaction on Eli Lilly (LLY) Foundayo Report Appears Overdone

Eli Lilly and Company (NYSE:LLY) is one of the

10 Strong Buy S&P 500 Stocks to Invest In.

On May 4, 2026, Wolfe Research said the FDA received a report on April 30 through its Adverse Event Reporting System involving a case of serious hepatic failure in a patient treated with Eli Lilly and Company (NYSE:LLY)’s Foundayo. After contacting the company, Wolfe Research cited Lilly’s response that it “determined it was not reasonably related to Foundayo,” and said the market reaction appears “overdone,” maintaining an Outperform rating and $1,325 price target.

On the same day, RBC Capital noted Eli Lilly shares fell as much as 3% in pre-market trading following the report, but said the company provided the same assessment that the case was not linked to Foundayo. The firm described the clinical data as “clean” and said hepatic events are seen across injectable GLP-1s, adding the reported case “represents baseline noise,” while maintaining an Outperform rating and a $1,250 price target.

On May 1, 2026, Morgan Stanley raised its price target on Eli Lilly to $1,344 from $1,327 with an Overweight rating, citing Q1 results and higher 2026 guidance supporting its GLP-1 outlook.

On April 30, 2026, Eli Lilly and Company (NYSE:LLY) reported Q1 EPS of $8.55 versus $6.79 consensus and revenue of $19.8B compared to $17.8B expected. CEO David Ricks said the company delivered “56% revenue growth” and raised full-year guidance, highlighting FDA approval of Foundayo and continued pipeline progress.

Eli Lilly and Company (NYSE:LLY) develops and markets pharmaceutical products globally.

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