7 Catalysts For Eli Lilly Over The Next Year

LLY) shares over the coming year even as it downgraded the shares of the company on the pretext that there are limited drivers of further upside after the stock's recent run, which lifted it by 13 percent since mid-August." data-reactid="18">Credit Suisse in a note Monday listed seven catalysts for

Eli Lilly and Co (NYSE: LLY) shares over the coming year even as it downgraded the shares of the company on the pretext that there are limited drivers of further upside after the stock's recent run, which lifted it by 13 percent since mid-August.

As such, the firm downgraded shares of Eli Lilly from Outperform to Neutral but maintained its price target for the shares at $88.

At time of writing, Eli Lilly shares were sliding 1.30 percent to $85.91.

Analysts Vamil Divan, Michael Morabito, Barbara Kotei and Duaa Mohamed discussed several factors that prompted them to have below-consensus estimates for the company. Notwithstanding the risk factors, the analysts see a few catalysts over the coming year. The catalysts include:

Attention Biotech Investors, Here's Your PDUFA Primer For October " data-reactid="23">See also: Attention Biotech Investors, Here's Your PDUFA Primer For October

The risk factors the analysts are wary about including their below-consensus sales forecast for Basaglar and, over time, for Humalog as well. The analysts also assume a slower ramp for Verzenio following its recent FDA approval, given the competition in the space. Verzenio is indicated to treat advanced or metastatic breast cancer.

The analysts also adjusted their expense forecasts due to the loss of patent protection for two higher margin drugs, namely Strattera and Cialis.

Credit Suisse expects sales to be flat in 2018 due to patent expiries, before returning to growth. The firm expects 2015–2020 sales to grow at a CAGR of about 4 percent as opposed to the company's guidance of 5 percent, plus.

Although the firm sees an expansion in operating margin from about 25 percent in 2017 to 30.6 percent in 2010, it left its earnings per share estimates for the 2018–2020 timeframe below 2–3 percent below the Street.

______

Image Credit: "Eli Lilly float at the 2017 500 Festival Parade" By NaBUru38 - Own work, CC BY-SA 4.0, via Wikimedia Commons

Latest Ratings for LLY

Date Firm Action From To
Oct 2017 BMO Capital Maintains Underperform
Oct 2017 Credit Suisse Downgrades Outperform Neutral
Sep 2017 Jefferies Maintains Buy

View More Analyst Ratings for LLY

View the Latest Analyst Ratings

See more from Benzinga

© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source : https://finance.yahoo.com/news/7-catalysts-eli-lilly-over-143336236.html

7 Catalysts For Eli Lilly Over The Next Year
Pharma Stock Roundup: Teva Announces Major Job Cuts, Lilly Provides 2018 Outlook
Teva Pharmaceutical to cut 14,000 jobs, close 'significant' factories
Why Nektar Therapeutics Shares Delivered a Stupendous 124% in November
Merck raises stakes in lung cancer as rivals close in
FDA approves Sanofi's follow-on version of Lilly’s Humalog
SunTrust Says Big Pharmaceuticals Have Multiple Catalysts for the Rest of 2017
Health secretary nominee Azar says lowering drug prices a top priority
Pfizer Reports Updated Data From Phase III Study On Ibrance
[LIMITED STOCK!] Related eBay Products