Eli Lilly (LLY) could deliver a "beat-and-raise" second quarter, driven by US prescription growth for Zepbound and Mounjaro, Truist Securities said in a note on Wednesday.

"We maintain high conviction in Lilly's incretin portfolio," the report said. The Q2 results are due Aug. 5.

While current growth stems from Mounjaro/Zepbound, the note pointed to "substantial" potential for Foundayo, its oral obesity treatment, and retatrutide to expand the patient basis.

"Despite record-shattering revenue, we believe the market remains conservative on the ultimate obesity TAM," the note said. "LLY is well-positioned to capture additional market share over the next decade."

Truist raised its price target to $1,370 from $1,281 while keeping its buy rating.

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