Bernstein initiates coverage of US pharma stocks with an 'Outperform' rating on Lilly (LLY.US)

Bernstein initiates coverage of Eli Lilly (LLY.US), Gilead Sciences (GILD.US) and Amgen (AMGN.US) with "Outperform" ratings.

The investment firm said its bullish ratings on Gilead and Amgen are based on its optimistic outlook for revenue growth of key assets from now to 2030, including Gilead's HIV PreEP treatment drug lenacapavir, Amgen's weight loss drug MariTide and its rare disease portfolio.

Bernstein also said it expects "optimism around Gilead's diversified strategy to continue to build over the next year."

Regarding Eli Lilly, Bernstein said the rating "depends on how it uses cash from its weight loss drugs." Bernstein believes Lilly is ready to "grow with a diversified portfolio, using weight loss drugs to grow and 'beat' the traditional reinvention cycle."

Bernstein also initiates coverage of Merck (MRK.US), AbbVie (ABBV.US), Bristol Myers (BMY.US), Moderna (MRNA.US) and Pfizer (PFE.US) with "Hold" ratings.