Will Eli Lilly (LLY) Stock Be Hurt By This Downgrade?

NEW YORK (TheStreet) -- Shares of Eli Lilly & Co.  (LLY) were downgraded to "neutral" from "buy" at MKM Partners this morning.

The shares are down -0.50% to $59.73 in pre-market trade.

MKM said the shares are "now trading just 1.0% below our $61 fair value estimate."

Additionally, the firm noted, "after the April 21 FDA approval of Cyramza (ramucirumab) for gastric cancer, we see limited near term catalysts for Lilly."

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The firm  stock were down today by $0.83 (1.36%) as of the close of trading. By the end of trading, 6.27 million shares of LILLY (ELI) & CO exchanged hands as compared to its average daily volume of 5.39 million shares. The stock ranged in price between $59.97 to $61.15 after opening the day at $60.97 as compared to the previous trading day's close of $60.86. Overall, LILLY (ELI) & CO lagged the S&P 500 which was up 0.41%. Important items of note for LILLY (ELI) & CO and possible rationale for parts of today's stock move go as follows:

TheStreet Ratings team rates LILLY (ELI) & CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate LILLY (ELI) & CO (LLY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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