The firm cited that the Indianapolis-based pharmaceutical company is entering a long lasting period of accelerating revenue and EPS growth, as well as is offering a diversified pipeline as reasons for the upgrade.
Tuesday's CNBC's "Fast Money Halftime Report" panel discussed Eli Lilly stock this afternoon.
"It's a cheap stock, I've been fooled by it because I kept thinking about Alzheimer's, which is very hard to solve, but this gave you enough weapons to think you don't need to," TheStreet's Jim Cramer said.
Eli Lilly has been working to develop a drug for Alzheimer's called "Sola" which Goldman says is "a very valuable asset." However, Goldman also reiterated that if the drug were to prove unsuccessful that the company would have enough assets to achieve double-digit growth in earnings for the next five years.
"The interesting thing about Lilly is that it has underperformed, down 5% on the year. They've got a really good pipeline," TIAA Global Asset Management managing director Stephanie Link added.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: LLY