NEW YORK ( TheStreet) -- Shares of Eli Lilly (LLY - Get Report), which are down more than 15% over the past six months, are still under pressure following a recent downgrade from Jefferies analyst Jeffrey Holdford. Not only was the stock reduced to underperform from hold but Holdford cut the price of the stock from $49 per share to $40, which suggests a possible 20% downside from current levels.Among other things, Holdford cited Lilly's pipeline, which is seen as weak and able to support neither the company's current dividend nor future cash flow allocations. Truth be told, while I haven't been Lilly's biggest fan, I don't subscribe to this recent assessment. It's not that I disagree with Holdford's concerns, they're just not new. As noted, with the stock already down more than 15% since April, I believe Lilly's poor pipeline situation, which has long been an unwanted stigma, has already taken its toll.
Lilly's Pipeline Fears Are Overblown
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