Investing.com -- Goldman Sachs initiated coverage on several large-cap pharmaceutical companies, taking a cautious stance on Bristol-Myers Squibb (NYSE:BMY), Pfizer (NYSE:PFE), and AbbVie (NYSE:ABBV), while upgrading Eli Lilly (NYSE:LLY) to a Buy on strong growth prospects in obesity treatments.

The brokerage downgraded Bristol-Myers Squibb to Neutral from Buy and cut its price target to $55 from $67.

While Goldman said the market has largely priced in upcoming revenue losses tied to patent expirations, it sees “a significant gap to bridge” before a return to growth.

The brokerage flagged lingering uncertainty over when earnings will bottom later this decade, even as new products like Cobenfy and Camzyos begin to scale.

Goldman also downgraded Pfizer to Neutral and slashed its price target to $25 from $32, citing ongoing pressures in the base business and a lack of near-term catalysts.

The firm said that while Pfizer has taken steps to rebuild through M&A and pipeline refocus, these efforts “will take time to get recognized.”

Coverage on AbbVie was also assumed at Neutral, with Goldman lowering its price target to $194 from $212.

The bank noted that consensus expectations now reflect the strong momentum of key immunology drugs Skyrizi and Rinvoq, leaving limited room for upside.

It warned of continued challenges in the company’s Aesthetics unit, citing macroeconomic softness and rising competition.

In contrast, Goldman upgraded Eli Lilly to Buy from Neutral, maintaining a price target of $888. It sees Lilly as “the sector’s premier topline grower,” driven by leadership in the obesity drug market.

The firm projects Lilly’s once-daily pill, orforglipron, to generate peak sales of $23.5 billion by 2035, well above consensus.

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