03:37 PM EDT, 08/09/2024 (MT Newswires) -- Eli Lilly and Company's ( LLY ) forecasting-beating Q2 results showed key GLP-1 drugs Mounjaro and Zepbound benefiting from increased pricing and a "better balance" between supply and demand, UBS Securities said Thursday in a report.

Investor concerns should ease with management confident that pricing will be stable and "increasingly positive" on production expectations for the rest of the year for weight loss drug Zepbound and diabetes treatment Mounjaro, UBS said.

"Assurances of Mounjaro and Zepbound supply and pricing should alleviate investor concerns, and with positive readouts, we see momentum" through the year, UBS Securities said.

UBS boosted forecasts for earnings per share to $16.52 from $13.80 in 2024 and to $23.18 from $21.02 in 2025. Revenue projections rose to $46.5 billion $43.4 billion in 2024 and to $57.8 billion from $55.1 billion in 2025.

UBS reiterated its buy rating and $1,100 price target on the stock, while citing caution on potential increased operating expenses and advances by rivals.

Shares of Eli Lilly ( LLY ) rose 5.5% in recent trading Friday.

Price: 892.05, Change: +46.74, Percent Change: +5.53