UPDATE: Deutsche Bank Downgrades Eli Lilly On Positive Outlook, Modest Upside

In a report published Thursday, Deutsche Bank analyst Gregg Gilbert downgraded the rating on Eli Lilly and Co LLY from Buy to Hold, but reiterated the $75.00 price target.

In the report, Deutsche Bank noted, “For a few years we have been contrarian bulls on LLY based on what we saw as attractive valuation (DCF), an under-appreciated base business and pipeline, and the concept that the Street would eventually focus on what should be a multi-year EPS growth cycle starting in 2015. With the stock having done so well in 2014 (+35% vs 11% for S&P) and with relatively modest upside to our $75 PT, we are shifting to a Hold rating on the stock. We continue to believe management has done and is doing the right things to maximize shareholder value, and we see good optionality tied to the longer-term pipeline. We see 2015 as an important “execution year” in which investors need to see good launch success for the recently-approved oncology and diabetes products.”

Eli Lilly closed on Wednesday at $69.23.