NEW YORK (TheStreet) -- Shares of Eli Lilly and Co. (LLY) are up 2.04% to $72.50 in pre-market trading Thursday morning after Morgan Stanley upgraded company to "overweight" from "underweight" and raised its price target to $85 from $60.
"Recent external data readouts in major disease states, atherosclerosis and Alzheimer's, make us more confident that Lilly management is making the right pipeline investments," analysts said about the Indianapolis-based pharmaceutical products company.
"We envision theoretical peak sales potential of $3 billion plus for evacetrapib and $10 billion plus for solanezumab, representing significant optionality relative to 2015E total company sales of $20 billion," analysts noted.
"We raised our price target from $60 to $85 (22x new '16E EPS of $3.85), driven by boosting EPS, rolling from '15E to '16E, and bumping P/E from 20x to 22x (due to higher LT growth)," analyst added.
Separately, TheStreet Ratings team rates LILLY (ELI) & CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LILLY (ELI) & CO (LLY) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."