Why Eli Lilly Stock Cruised to a 3% Gain on Monday
A new take on Eli Lilly (NYSE: LLY) stock by a prominent bank sent the pharmaceutical company's share price 3% higher on Monday. A Wells Fargo analyst upped his recommendation on the stock, and the market took that to heart. That 3% uptick was more than good enough to beat the nearly 0.2% slump of the bellwether S&P 500 index on the day.
The prognosticator, Mohit Bansal, lifted his recommendation by one peg; he now thinks Lilly is worthy of an overweight ranking ("buy," in other words), up from his previous call of equal weight (or "hold"). Bansal also cranked his price target on the stock higher, to $375 per share from the preceding $360.
The analyst noted that the company is suffering from recent share-price weakness, which in his view is undeserved and has thus created an opportunity to grab the stock for cheap.
Source Fool.com
