Pharmaceutical corporation Eli Lilly and Company (NYSE: LLY) recently announced that it is looking to invest $1 billion to develop a new manufacturing site in Concord, North Carolina. The new facility is expected to create about 600 jobs in the region.
Following the news, shares of the company rose 3.5% to close at $245.10 on Friday.
The manufacturing facility is aimed at making injectable products and devices and increasing the company’s manufacturing capacity by harnessing the power of technology.
With the planned opening of the new facility, Lilly is looking to take advantage of the experienced labour force of the region, along with the presence of universities specializing in science, technology, engineering and math (STEM) programs to ensure a steady supply of skilled manpower.
The President of Lilly Manufacturing Operations, Edgardo Hernandez, said, “Expanding our manufacturing footprint in North Carolina enables us to continue to produce today’s medicines while providing additional capacity to manufacture the medicines of tomorrow. We are pleased to again partner with North Carolina to bring jobs to American workers and provide more medicines that patients need to address health challenges.”
Recently, Mizuho Securities analyst Vamil Divan reiterated a Buy rating on the stock with a price target of $302, which implies upside potential of 23.2% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 11 Buys and 4 Holds. The average Lilly price target of $294.27 implies that the stock has upside potential of 20.1% from current levels. Shares have gained about 20.7% over the past year.
News Sentiment for LLY is Positive based on 71 articles over the past seven days. 60% of the articles have Bullish sentiment, compared to a sector average of 61%.
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