Citi Upgrades This Big Pharma Stock On Positive Alzheimer's Expectations

Citi upgraded Eli Lilly And Co LLY to Buy from Neutral with a price target of $265, up from $210, an upside of almost 16%.
Analyst Andrew Baum says the upgrade is "predominately valuation driven," following the 15% selloff in the shares.
Related Link: Lilly's Donanemab Lowers Alzheimer's-Associated Biomarkers In Patients With Early Disease.
The analyst believes Alzheimer's launch expectations are now recalibrated and notes his earnings estimates are 2%-20% above consensus.
Baum says that while he never believed in the "exuberant" initial market launch expectations for Biogen's Aduhelm, he remains optimistic for the pending outcome of Eli Lilly's TRAILBLAZER-ALZ2 data set expected in Q1 of 2023 and commercial success.
In the near term, accelerated Aduhelm adoption would aid Lilly's share price, Baum says.
In June, donanemab received FDA Breakthrough Therapy Designation for Alzheimer's Disease.
Also Read: Eli Lilly's Donanemab Showed Mixed Data In Mid-Stage Alzheimer's Study.
Price Action: LLY stock closed up 4.04% at $230.36 on Wednesday.

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