Citi Comments on Eli Lilly

Citi has put out a report on Eli Lilly LLY. In the report, Citi commented that, "Our 2Q11 EPS is $1.20 (+5% YOY), above the Street's $1.17. We model 2Q11 revenue of $6.05B (+5%), above the Street's $5.99B. We project US and international sales of $3.29B (+1%) and $2.76B (+11%, assuming a sequential buy-out in Japan), respectively. For 2Q11, we see upside of $261M ($0.06 of EPS) on sales of key products compared to prescription growth plus price increases (see Figure 1). This compares to 1Q11/4Q10/3Q10 where LLY underperformed TRx + PIs by $199M/ $163M/$245M, respectively. We maintained our 2011E EPS of $4.30 (-9%), which is at the upper end of LLY's $4.15 (-8.7%) to $4.30 (-9.2%) range & the Street's $4.27." Citi rated Eli Lilly a High Risk Hold with a price target of $38.00. Eli Lilly closed Friday at $38.33.