“Following a period of restriction, we are moving to an Overweight rating and a December 2019 price target of $140 from a Not Rated designation (OW rating and YE19 PT of $128 prior to restriction) and adding the company to the analyst Focus List (growth)… Overall, we continue to see Lilly as the best positioned of our large-cap names based on a combination of healthy core product growth (Trulicity, Taltz, Jardiance, etc), a growing portfolio of new launches and next-generation pipeline assets (tirzepatide, Emgality, Loxo-292, tanezumab, etc), a significant margin expansion story (high 20’s margins that we see moving to the mid/high 30’s over time), and several sources of upside to near- and long-term numbers. Along these lines, we expect the company to generate 6-8% topline growth and mid-teens annual EPS growth through much of the decade.. Lilly represents a top pick in our coverage…”
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