Is This the Right Time to Add Eli Lilly & Co (NYSE:LLY) to Your Portfolio?

[Market Realist] Eli Lilly & Co (NYSE:LLY)(TREND ANALYSISThe oncology franchise contributed ~18.4% of total revenues during 1Q16. Key drugs in this segment include Alimta, Erbitux, and Cyramza. A new drug, Portrazza, was launched in the US markets in December 2015.

Alimta
Alimta is a chemotherapy drug used in the treatment of patients with advanced non-small cell lung cancer (or NSCLC). Alimta sales fell by ~1.5% to $564 million during 1Q16, as compared to $573 million for 1Q15. This included an increase of 4% in the US markets and a decrease of ~6% in international sales. The sales in US markets were driven by changes in wholesaler buying patterns while the sales in international markets were negatively impacted by lower realized prices and foreign exchange. Allergan (ACT) has a drug that competes with Alimta.

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Eli Lilly & Co (NYSE:LLY) stock is currently trading 17.88% below its 52-week-high, 12.33% above its 52-week-low. The 1-year stock price history is in the range of $67.88 – $92.85. Eli Lilly & Co (LLY) has a price to earnings ratio of 33.74 versus Healthcare sector average of 40.79. LLY stock price has underperformed the S&P 500 by 10.5%. The Medical Drugs company is currently valued at $80.46 billion, and its share price closed the last trading session at $76.25. The stock has a 50-day moving average of $74.14 and a 200-day moving average of $78.46.

Eli Lilly & Co (LLY) current short interest stands at 9.28 million shares. It has decreased by 6% from the same period of last month. Around 9% of the company’s shares, which are float, are short sold. With a 10-days average volume of 3.92 million shares, the number of days required to cover the short positions stand at 2.4 days.

LLY is forecasted to report earnings per share of $0.86 and a revenue of $5.14 billion for the 2nd Quarter of the fiscal year 2016. Eli Lilly & Co (LLY) declared last quarter earnings on April 26. The Medical Drugs company announced last quarter earnings per share of $0.83 against a consensus Street estimate of $0.85, missing estimate by $0.02. The company posted a revenue of $4.87 billion compared to an estimation of $4.82 billion.

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There are currently twenty-five analysts that cover Eli Lilly & Co stock. Of those twenty-five, sixteen have a Buy rating, nine have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $95.41.

A recent analyst activity consisted of Leerink Swann reiterating their Outperform stance on May 2. Leerink Swann increased their price target on LLY from $96 to $101. This corresponds to a 32.46% upside from the last closing price. On the date of report, the stock closed at $76.75.

Societe Generale initiated their coverage on the stock with Hold rating on April 6. On the date of report, the stock closed at $74.76.

Another research firm was Jefferies who reiterated their Buy stance on March 15. Jefferies decreased price target from $110 to $105. This translates to a 37.7% upside from the last closing price. On the date of report, the stock closed at $71.24.

Company snapshot

Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products for humans and animals. The Company’s products are sold in countries around the world. Eli Lilly’s products include neuroscience products, endocrine products, anti-infectives, cardiovascular agents, oncology products, and animal health products.

Is This the Right Time to Add Eli Lilly & Co (NYSE:LLY) to Your Portfolio? was last modified: May 4th, 2016 by Steven Finley