Eli Lilly's Stock Climbs After Analyst Upgrades On Optimism Over Diabetes Drug

Eli Lilly & Co.'s stock climbed 1.7% in premarket trade Friday, after the drug maker was upgraded at Credit Suisse, which said it anticipated better-than-expected sales of the diabetes drug Jardiance, sooner than originally expected. Analyst Vamil Divan raised his rating to outperform, after being at neutral the last two years. He lifted his stock price target to $105, which is 25% above Thursday's closing price of $83.77, from $89. Divan said a proprietary survey indicates that most physicians are already well aware of the positive results of a recent diabetes study. "We believe this should allow for increased use of Jardiance...even in the near-term, with further upside likely in 2017 and beyond once the data from the study are included in the Jardiance package insert," Divan wrote in a note to clients. The stock has run up 21% year to date through Thursday, while the S&P 500 has slipped 2.2%.