Goldman Sachs just made a series of big moves in U.S. biopharma coverage — lifting ratings on Johnson & Johnson (JNJ, Financial) and Eli Lilly (LLY, Financial) while cutting Pfizer (PFE, Financial), AbbVie (ABBV, Financial), and Bristol Myers Squibb (BMY, Financial) to Neutral.

Eli Lilly, which had seen a three-day decline, was upgraded to Buy by analyst Asad Haider. He said the company's strong position in the obesity drug market offers a compelling entry point. Still, Goldman slightly lowered its price target for the stock to $888 from $892.

Johnson & Johnson also got a boost to Buy. Haider said concerns about losing patent protection on its blockbuster drug Stelara may be overstated. He pointed out that pharmaceutical valuations tend to bottom out about a year before major losses of exclusivity, which could work in J&J's favor. Goldman raised its 12-month price target to $172 from $157.

On the flip side, AbbVie was downgraded to Neutral. Haider noted that investors already seem to have priced in the growth potential of its newer immunology drugs, Skyrizi and Rinvoq, following the Humira patent loss. The price target was cut to $194 from $212.

Pfizer also moved down to Neutral, with its target reduced to $25 from $32. Goldman thinks the benefits of Pfizer's cost-cutting and COVID-related M&A efforts in oncology will take time to show up in its share price.

Bristol Myers got the same treatment. Goldman said recent cost-cutting moves are already reflected in the stock, and its $67 target was cut to $55. The firm flagged looming patent cliffs and warned that bridging the expected revenue drop will be a significant challenge.