Goldman Sachs Suggests Buying Put Spreads on Eli Lilly and Company

Goldman Sachs is out with a research note this morning, where it suggests that traders buy put spreads on Eli Lilly and Company LLY ahead of its analyst day. Goldman Sachs Pharma analyst Jami Rubin rates LLY shares Sell and sees 7% downside to her $35 12-mth price target. Importantly, she sees LLY shares pricing in too high of a probability that LLY follows PFE's lead on restructuring announcements. Given that options market is pricing in potential for a somewhat volatile analyst day; the analysts prefer spreads. Goldman suggests buying the July $38/36 put spread for $0.61. Eli Lilly and Company discovers, develops, manufactures and sells products in one business segment, pharmaceutical products. It also has an animal health business segment. The company manufactures and distributes its products through facilities in the United States, Puerto Rico, and 17 other countries. Its products are sold in approximately 125 countries.