A Pair Trade With Eli Lilly And Johnson & Johnson? Goldman Just Explained Why It's A Solid Idea
The firm expects to see Eli Lilly deliver better results in 2015 than Johnson & Johnson.
Goldman upgraded Eli Lilly’s stock from Sell to Neutral, which it said was “based on the increased optionality provided by cost reduction, new product launches and pipeline assets."
Since reducing its FY 2014 outlook and guiding that FY 2015 will be near expectations, other firms have weighed in on the stock as well. The most bullish was Jefferies; analyst Jeffrey Holford upgraded the stock to Buy on the back of “margin expansion and anticipation of significant pipeline optionality.”
Deutsche Bank also maintains a positive outlook for Eli Lilly.
Johnson & Johnson
On the flip side, Johnson & Johnson was downgraded by Goldman from Neutral to Sell. The research firm set a price target of $97, about 5 percent below current levels.
Image credit: Gotz, Wikimedia
Latest Ratings for LLY
|Dec 2016||Morgan Stanley||Upgrades||Equal-Weight||Overweight|
|Nov 2016||Atlantic Equities||Downgrades||Overweight||Neutral|
|Nov 2016||BMO Capital||Downgrades||Outperform||Market Perform|
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