
ELI LILLY FACES RATING DOWNGRADE DUE TOSALES ISSUES, WHILST MOODY’S STOCKREACHES ITS ALL TIME HIGH
ELI LILLY FACES RATING DOWNGRADE DUE TO SALES ISSUES, WHILST MOODY’S STOCK REACHES ITS ALL TIME HIGH Erste Group, one of the main European banking groups based in Austria, recently modified its rating of portfolio holding Eli Lilly (LLY) (0.2 units purchased @582.99). Its recommendation changed from Buy to Hold and the main factors that contributed to this downgrade are two ratios: inventory/sales and receivables/sales. What analysts pointed out is that, despite the positive expectations about Eli Lilly’s earnings trend in the near future, the previously cited ratios increased too much, reaching their highest values in the last 6 years. A high inventory/sales ratio may indicate an overstocking or a worrying decrease in customers’ demand, while a rising value for receivables/sales probably reflects the difficulties faced by Eli Lilly in…