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Eli Lilly (LLY) Cut to Sell at Goldman Sachs

November 11, 2013 7:01 AM EST Send to a Friend
Get Alerts LLY Hot Sheet
Price: $65.29 -0.08%

Rating Summary:
    9 Buy, 9 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 18 | New: 23
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Goldman Sachs downgraded Eli Lilly (NYSE: LLY) from Neutral to Sell with a price target of $48.00 (from $52.00). Analyst Jami Rubin expressed caution about the lack of differentiation in Eli Lilly's pipeline.

"As LLY's primary care business declines due to patent expirations, the new product portfolio is increasingly important to support LLY's earnings post 2014. However, we see a lack of differentiation for key pipeline products in LLY's diabetes and oncology portfolios which comprise the majority of LLY's new products," said Rubin.

"Despite flat EPS prospects from 2013-2018, which assumes Alimta's 2022 patent prevails, and limited potential for structural or new pipeline optionality (we see Sola’s prospects as dim), the stock's premium valuation (19X 2014E and 16x 2015 versus ABBV’s P/E of 15x) creates more risk to the downside relative to other names in our sector," he said.

For an analyst ratings summary and ratings history on Eli Lilly click here. For more ratings news on Eli Lilly click here.

Shares of Eli Lilly closed at $50.63 yesterday.




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