Eli Lilly (LLY) is expected to deliver Q2 revenue slightly above consensus on stronger-than-anticipated sales of Mounjaro and Zepbound, RBC Capital Markets said Wednesday in a report.

RBC forecasts Q2 revenue of about $20.7 billion, ahead of the $20.5 billion consensus estimate, driven by 5% to 6% beats for the diabetes and obesity drugs on robust prescription growth in the US and international markets. That strength is expected to more than offset weaker sales of Verzenio, Taltz and Trulicity, the report said.

Q2 earnings per share are expected in line with consensus as higher operating expenses tied to commercialization offset revenue upside, RBC said. Eli Lilly may raise its full-year guidance again, though by a smaller amount than after Q1, citing expanding Medicare access for obesity treatments, international growth opportunities and the rollout of its oral GLP-1 therapy Foundayo as key long-term drivers, the report said.

Q2 results are expected Aug. 5.

RBC raised its price target on Eli Lilly stock to $1,500 from $1,250 and maintained its outperform rating. The company's manufacturing capacity, patent exclusivity through at least 2035 and continued leadership in the weight-management market support a higher valuation despite ongoing pricing pressure on mature products, the report said.

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