NEW YORK (TheStreet) -- Eli Lilly (LLY) shares are down 2.2% to $84.69 on heavy volume trading Friday after analysts at Leerink Partners published a bearish report about the company's near term revenue prospects concerning a possible Alzheimer's Disease treatment.
Leering analyst Seamus Fernandez believes that the stock's 10% increase this week is tied to investors' bullish reaction to the trial data of its Alzheimer's Disease treatment, which is scheduled to be presented next month, solanezumab.
However, Fernandez says that any value Lilly will gain from solanezumab is at least over a year away from now.
"We are growing increasingly concerned that what is really driving the stock higher is hope for solanezumab and AD more broadly based solely on data from this abstract and its presentation in July -- putting significant [additional] value for solanezumab in [Lilly's] stock -- with 15-18 additional months before the full [Phase] III data read out," wrote Fernandez.
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 a number of strengths, 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 expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:LLY data by YCharts