In a bid to further bolster its presence in Indiana, pharmaceutical major Eli Lilly and Company (NYSE: LLY) recently revealed its plans to invest $2.1 billion in two new manufacturing sites in the region.
Following the news, shares of the company rose marginally to close at $307.05 in Wednesday’s extended trading session.
The new manufacturing sites in the familiar territory of Indiana are expected to expand Lilly’s manufacturing network for active ingredients and new therapeutic modalities. Moreover, Lilly’s aim of introducing four potential new medicines in the next two years may receive a boost.
The construction of the sites will result in the creation of 500 new positions in Lilly. Further, 1,500 construction jobs will be created for building the sites.
Management’s Take
The CEO of Lilly,, David A. Ricks, said, “More than 146 years after our founding, Lilly remains committed to investing and innovating in Indiana. These new sites will add capacity in support of our growing pipeline of innovative medicines, while also creating more high-tech jobs for Hoosiers. We are pleased to be a founding investor at the LEAP Lebanon Innovation District.”
Stock Rating
Recently, Jim Kelly of SVB Securities initiated coverage on the stock with a Buy rating and a price target of $341, which implies upside potential of 9.89% from current levels.
According to the analyst, the company’s sales growth potential remains strong. Moreover, the analyst believes that Lilly’s robust product pipeline gives it a strong footing.
Overall, the Street has a Strong Buy rating on the stock based on 12 Buys and four Holds. LLY’s average price target of $322.31 implies upside potential of 5% from current levels. Shares have gained 52.8% over the past year.
Positive Sentiment
TipRanks’ Stock Investors tool shows that top investors currently have a Positive stance on LLY. Further, 3.8% of the top portfolios tracked by TipRanks increased their exposure to LLY stock over the past 30 days.
Conclusion
As the company is already familiar with the region, Lilly’s move to bolster its presence in Indiana further seems to be prudent.
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