While it appears at least for the time being that the Greek can once again has been kicked down the road, looking for solid more defensive stocks still makes good sense in a market that is fully priced to perfection. A new report from Jefferies updates the firm’s top global pharmaceutical stocks to buy, and these may make even more sense for investors now.

The Jefferies team has remained consistently bullish on some of the best large-cap pharmaceuticals all year, and it has paid off for clients. We screened the Jefferies global top picks for the companies based here in the United States.

AbbVie

This is a top global pharmaceutical stock to buy at Jefferies, and also a franchise stock pick as well. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following its separation from Abbott Laboratories. The company’s mission is to use its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases. AbbVie employs more than 26,000 people worldwide and markets medicines in more than 170 countries.

The company reported outstanding first-quarter earnings as Humira sales continued on a torrid pace. Larry Robbins from Glenview Capital said last month he believes that the stock is trading relatively “cheap” and that AbbVie’s pipeline is underappreciated as it will be difficult for competitors to make a generic version of Humira, a drug to treat rheumatoid arthritis and Crohn’s disease.

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With numerous clinical read-outs for the stock over the rest of 2015, many on Wall Street think that over time the stock could have anywhere from $15 to $25 per share upside from current levels. Many analysts feel that investors may not fully appreciate the earnings power of the company, even with a biosimilar Humira, given the incredible pipeline, the Pharmacyclics deal and the ability to adjust the cost structures.

The Jefferies analysts point out in the report that they expect several updates on the Humira franchise in 2015, including more visibility on the issued and pending patent estate for Humira and an update on the clinical profile of “New Humira,” which is expected to launch in the last half of 2015. EU approval is expected by the end of this month.

AbbVie investors are paid a very solid 3% dividend. The Jefferies price target is for the stock $90, among the highest on Wall Street. The Thomson/First Call consensus target is much lower at $74. Shares closed Monday at $69.57.
Eli Lilly

This stock also checks in high on the Jefferies global pharmaceutical list. Eli Lilly & Co. (NYSE: LLY) is somewhat surprisingly still out of consensus with some portfolio managers at mutual fund and hedge funds, or what is known as the buy side.

The company easily beat analysts’ earnings expectations for the first quarter, as its $0.87 per share topped guidance of $0.76 per share by 11 cents. Revenues for the period declined 1% to $4.65 billion but were still enough to top analysts’ $4.63 billion expectations.

While generic competition is eating into profits with the company’s Cymbalta and Evista drugs, and currency headwinds took a toll on overseas sales, the drug giant still affirmed forward expectations. The company’s new cancer drug Cyramza won FDA approval for label expansion just last month. It treats patients suffering from metastatic colorectal cancer. This was the fourth Cyramza approval in a one year period; it already has approval to treat advanced or metastatic gastric or gastroesophageal junction adenocarcinoma and metastatic non-small cell lung cancer. Cyramza has so far generated sales of $67.5 million.

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The Jefferies team loves the company’s product pipeline and they also think that the potential for evacetrapib should begin to be realized during the next 12 months. And there could be pressure on portfolio managers to own the stock into the event.

Shareholders are paid a solid 2.42% dividend. The Jefferies price target is raised from $100 to $105, and the consensus target is $85.61. Shares closed Monday at $88.82.

Pfizer

This was the top global pick before AbbVie leapfrogged back to the number one spot. Pfizer Inc. (NYSE: PFE) rocked Wall Street this year by announcing a gigantic $15.2 billion purchase of Hospira, a top provider of sterile injectable drugs — including those used for acute care and cancer treatment — infusion technologies and biosimilars. In other recent solid news, Pfizer’s drug Ibrance was approved for advanced breast cancer by U.S. regulators more than two months ahead of schedule, letting the drugmaker proceed with one of its most promising new blockbusters, a turn of events that Wall Street likes.

With a strong pipeline and the fact that Pfizer is the world’s largest drug manufacturer by sales value, many analysts feel the company can generate higher long-term revenues through the accelerated growth of its new drugs over the next five years, with Ibrance leading the way. The Jefferies analysts called the early approval for Ibrance and estimate that it will generate 2015 fiscal year revenues of $613 million, versus $397 million in First Order consensus.

Pfizer investors are paid a solid 3.3% dividend. The Jefferies price target is set at $45. The consensus target is $38.18, and the stock closed Monday at $34.82 per share.

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Nothing is better than playing it safe with stocks that have outstanding growth potential. These three top large-cap pharmaceutical stocks are suitable for almost all growth and growth and income portfolios and, again, they make good sense in a very rich market.

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