BMO's Updated Eli Lilly Model Following Earnings

Eli Lilly and Co LLY on Thursday reported better than expected first quarter results. In a report issued Friday, BMO Capital Markets analysts Alex Arfaei and David Redfern reiterated an Outperform rating, updated their model and boosted the price target from $72 to $74.

On The Results

Revenue took a 6 percent hit from FX, coming in in line with estimates. However, the company beat bottom line expectations, mainly on the back of lower OPEX.

The analysts think the company should meet or exceed its guidance for 2015, particularly on the earnings front. They have raised their estimates “to better account for Cyramza’s near-term launch opportunities, Ixekizumab, and slower generic erosion for Cymbalta and other products.” They have also updated their

Animal Health forecasts “based on the Novartis animal health data provided.” They forecast roughly 1 percent revenue growth for this year, “driven by animal health, Cyramza/Ramu and collaboration diabetes revenues.”

The New Model

According to the report, BMO models for 2015 EPS of $3.25 on revenue of $19.805 billion. For 2016, they project EPS of $3.72 on revenue of $21.202 billion. Finally, for the upcoming quarter, they expect EPS of $0.71, slightly up year-over-year.