Argus Reiterates $93 Target On Eli Lilly, Highlights 'Strong Late-Stage Pipeline'

• The share price of Eli Lilly and Co LLY has appreciated 16.59 percent over the past one year, from $69.74 on January 15, 2015.
• Argus’ Jacob Kilstein has reiterated a Buy rating and $93 price target on the company.
• Kilstein believes that the company has a solid late-stage pipeline, with nine new potential products, including a therapy for breast cancer and one for Alzheimer’s.

Analyst Jacob Kilstein believes that regulatory approval for Eli Lilly’s late-stage pipeline could prove to be a positive catalyst for the stock, and that the stock was currently favorably valued versus peers, with the 2.5 percent dividend yield adding to the total potential return.

On January 5, the company had reiterated its adjusted EPS guidance for 2015, while establishing the 2016 guidance marginally below the pre-reporting consensus forecast. Eli Lilly also guided to sales of $20.2-$20.7 billion for 2016, again slightly below consensus.

Kilstein stated that the guidance implied 2 percent earnings growth and 3 percent sales growth for 2016.

Eli Lilly is expected to have witnessed continued cost reductions, along with robust sales of Cyramza, in 2015.

The EPS estimate for 2016 has been lowered from $3.85 to $3.54 to reflect the company’s current guidance.