What Analysts Recommend for LLY and AMGN

The better pick

Eli Lilly and Company (LLY) is down 0.20%, and Amgen (AMGN) is down 3.88% in 2019 on a YTD (year-to-date) basis. Investors seem to be disappointed with the first-quarter results of both companies.

Analysts’ recommendations

The consensus recommendation for Eli Lilly is a “hold,” and for Amgen, it’s a “buy.”

Analysts expect an upside potential of 7.98% for Eli Lilly based on its closing price on June 21. Analysts have gradually increased the company’s 12-month consensus target price from $123.53 in March to $123.71 in April, $123.92 in May, and $124.71 in June.

Of the 17 analysts covering Eli Lilly, one has given it a “strong buy,” six have given it “buys,” and ten have given it “holds.”

Analysts expect an upside potential of 9.61% for Amgen based on the company’s closing price on June 21. Analysts first increased the company’s 12-month consensus target price from $206.86 in March to $206.90 in April. They then reduced it to $205.00 in May but raised it to $205.10 in June.

Of the 24 analysts covering Amgen, five have given it “strong buys,” seven have given it “buys,” and 12 have given it “holds.”

Share price movements and valuation

On June 21, Eli Lilly closed at $115.49, 0.06% lower than its previous day’s close, 36.45% higher than its 52-week low of $84.64, and 12.59% lower than its 52-week high of $132.13. The company’s market cap was $112.19 billion, and its PE, forward PE, PEG (PE-to-growth), PS (price-to-sales), PB (price-to-book), and PC (price-to-cash) ratios were 42.60x, 17.54x, 3.97x, 4.68x, 45.65x, and 52.50x, respectively.

On June 21, Amgen closed at $187.11, 1.65% higher than its previous day’s close, 12.51% higher than its 52-week low of $166.30, and 10.98% lower than its 52-week high of $210.19. The company’s market cap was $116.38 billion, and its PE, forward PE, PEG, PS, PB, and PC ratios were 14.93x, 12.70x, 7.59x, 4.90x, 10.75x, and 4.43x, respectively.

Compared to Amgen, Eli Lilly is trading at higher PE, forward PE, PB, and PC ratios but lower PEG and PS ratios.