CFRA Research upgraded Eli Lilly (NYSE:LLY) to buy from hold as it sees the drugmaker largely exempted from the 100% tariffs on imported branded medications.
President Trump said that companies that are building new production facilities in the US will be free from the tariffs.
The Indianapolis-based pharma announced in February it was doubling a prior commitment to boost US manufacturing to ~$50B worth of new investments. In September, Lilly said it would build a $5B production plant in Virginia.
CFRA raised its price target to $835 from $700 (~15% upside based on Friday’s close).
Analyst Sel Hardy said that Lilly is “well positioned with its plans to double down its investment footprint in the U.S., increasing its domestic drug production capacity across different therapy areas.”
He added that earlier this week, Lilly said it would spend $6.5B on a new plant to manufacture small molecule drugs.
Hardy also highlighted the recent approval of Alzheimer’s therapy Kisunla (donanemab) in Europe as a positive.
