Eli Lilly Price Target Hiked To $92 At Argus: Here's Why

In a report published Thursday, Argus analyst John Eade maintained his Buy rating on

, while raising the target price from $80 to $92. The stock has been witnessing solid momentum in recent weeks, gaining 13.5 percent over the past quarter. The stock has outperformed the S&P 500, driven by favorable pipeline developments. The company is scheduled to report its 2Q results on July 23. The Street expects Eli Lilly to post a year on year improvement in EPS, although the revenue is expected to drop 1 percent, year on year. However, this would entail a sequential improvement in revenue from 1Q15. "We expect Lilly to resume an earnings growth path this year and attract investors who have been scared off by the loss of patent protection for blockbuster anti-depressant and schizophrenia drugs, among others. In preparation for these losses, Lilly has been developing new drugs, and currently boasts a clinical pipeline that includes three recent product launches and several product candidates in Phase III trials," Eade stated. The analyst expressed his optimism regarding Eli Lilly's long-term prospects, while adding that any non-fundamental selloffs would present buying opportunities. The robust and sustainable dividend yield of approximately 2.4 percent also make the stock attractive.