Looking ahead to the pharmaceutical earnings season, UBS expressed cautious optimism when looking at several major names.
Notably, Eli Lilly and Co (NYSE:LLY), with a 'buy' rating and a price target of $910, is expected to see mixed performance due to shortages of its weightloss drig Mounjaro and Zepbound, though early stocking could partially offset declines in Trulicity sales.
Johnson & Johnson (NYSE:JNJ) also received a 'buy' rating with a price target of $180, with pharmaceutical sales anticipated to outperform due to strong prescription trends.
Abbvie Inc (NYSE:ABBV), holding a 'neutral' rating and a price target of $172, might see a modest rise in 1Q24 revenue, particularly from Skyrizi and aesthetics, with an expected boost from the early Immunogen deal closure.
Conversely, Bristol-Myers Squibb Co (NYSE:BMY, ETR:RM, OTC:BMYMP) and Pfizer Inc (NYSE:PFE, ETR:PFE), both rated 'neutral' with price targets of $52 and $28 respectively, are predicted to face challenges, with BMY likely impacted by recent IPR&D charges and Pfizer by lower Comirnaty and Paxlovid sales.
Merck & Co Inc (NYSE:MRK, ETR:6MK), rated Buy with a price target of $148, is expected to have steady 1Q24 results with significant interest anticipated in the Winrevair launch.