Eli Lilly & Co. (NYSE: LLY) was raised to Hold from Underperform at Jefferies.

GlaxoSmithKline PLC (NYSE: GSK) was raised to Buy from Hold at Jefferies.

Johnson Controls Inc. (NYSE: JCI) was raised to Outperform from Market Perform at Wells Fargo.

Logitech International S.A. (NASDAQ: LOGI) was raised to Neutral from Underperform at Credit Suisse.

See also: UBS Live Key Call List Features the Top Nine Stocks to Buy Now

Merck & Co. Inc. (NYSE: MRK) was raised to Buy from Hold with $54 price target at Jefferies.

Novo Nordisk A/S (NYSE: NVO) was raised to Hold from Sell at Deutsche Bank.

PSEG Co. (NYSE: PEG) was raised to Neutral from Underperform at Credit Suisse.

See also: Deutsche Bank’s Defensive Food Stocks to Buy

Qiwi PLC (NASDAQ: QIWI) was started as Outperform at Credit Suisse and started as Outperform at William Blair.

W.R. Grace (NYSE: GRA) was put on the Conviction Buy List with a $105 price target at Goldman Sachs.

The quiet period for Intelsat S.A. (NYSE: I) ended and the analysts were mixed to positive: started as Neutral at Credit Suisse, started as Hold at Deutsche Bank, started as Overweight at Evercore Partners and started as Buy at Nomura.

Read also: Top Analyst Downgrades for Tuesday

In a close examination of their stocks to buy, Merrill Lynch analysts sought to (1) point out possible product launches and (2) highlight important milestones, including potential threats for the companies in their coverage universe. The firm also summarized quarterly growth and margin trends and provided a valuation snapshot for each company. Here are the stocks to buy from Merrill Lynch.

AbbVie Inc. (NYSE: ABBV) seems to be on the radar at most major Wall Street firms, despite the fact that 50% of all revenues are from one drug (Humira). Merrill Lynch is bullish on the stock given its attractive valuation, above-average dividend yield, and the potential for the pipeline to deliver a blockbuster hepatitis C (HCV) franchise over the medium term. Their price target for the stock is $49. The Thomson/First Call consensus target is $45.50. Investors are paid a 3.60% dividend.

Bristol-Myers Squibb Co. (NYSE: BMY) is a stock to buy. Merrill Lynch analysts do have some concern over the pipeline of future products. They believe that pipeline setbacks could pressure the stock, but a solid dividend yield should limit downside risk. The Merrill Lynch price objective for the stock is $45. The consensus target is much lower at $38. Investors receive a 3.50% dividend.

Eli Lilly & Co. (NYSE: LLY) is considered a “sum-of-the parts” stock to buy. Continued strong cash flow generation, a focus on shareholder return through a stable dividend, expense control and potential for positive pipeline news could improve sentiment over time and lead to multiple expansion. The Merrill Lynch price target is $65. The consensus is, again, much lower at $57. Shareholders are paid a 3.60% dividend.

Merck & Co. Inc. (NYSE: MRK) is a stock to buy with characteristics similar to the Eli Lilly story. Merrill Lynch analysts are looking for continued strong cash flow generation, focus on shareholder return through a stable dividend (with potential for growth) and share buybacks, and potential for positive pipeline news could improve sentiment over time and lead to multiple expansion. The Merrill Lynch price target for the stock is $53, while the consensus is at $51. Investors are paid a 3.80% dividend.

Pfizer Inc. (NYSE: PFE) rounds out the list of large cap stocks to buy. With a solid current revenue base and a growing pipeline, Pfizer may have the most potential of the stocks to buy. The Merrill Lynch price target is $33. The consensus is $32. Shareholder are paid a 3.30% dividend.

While the Merrill Lynch report did not assess macro issues, which can play an important role in driving stock performance, it was very helpful for company-specific analysis. Combining strong growth potential with consistent and possibly rising dividends, make large cap pharmaceutical stocks a good bet for any portfolio.

Through an arrangement with CVS Caremark Corp. (NYSE: CVS), patients who have a valid prescription for Viagra will be able to order the medication online. Other treatments for erectile dysfunction like Cialis from Eli Lilly & Co. (NYSE: LLY), Levitra and Staxyn from GlaxoSmithKline (NYSE: GSK) and Germany’s Bayer A.G., Stendra from Vivus Inc. (NASDAQ: VVUS) and Zydena from South Korea’s Dong-A are likely to be the first followers as patients with prescriptions for these drugs may want to avoid the stigma — real or imagined — attached to purchasing these drugs in person.

But the makers of other drugs will be watching as well. By selling direct, drug makers avoid two problems. First is counterfeiting. Viagra, which sells by prescription for $25 a tablet, is often faked by online sellers and sold as the real thing. That damages the drug’s brand and keeps profits out of Pfizer’s hands.

Second, Pfizer will not undersell its distribution chain, at least not yet, meaning that the company will put more profit in its pocket. For Viagra, with sales of $2 billion a year, the company may realize some additional profit, but by promoting Web sales as offering “real Viagra,” Pfizer is offering a guarantee that the knock-off sites cannot match.

Makers of weight-loss drugs will be watching Pfizer’s Web sales closely, and these may be the next drugs to hit the market directly from manufacturers to patients. Drugs like Viagra attract more Internet searches from men and weight-loss medications more searches from women than any other medications.

If Pfizer can pull this off, it could decide to extend Web sales for other drugs or it could promote sales from online pharmacies like CVS or Walgreen Co. (NYSE: WAG). Once again, the Internet changes everything.

Under Pfizer’s new system, men armed with a prescription can order their drugs, have the order filed at CVS Caremark Corp. (NYSE: CVS) and then mailed. Pfizer describes the benefits of the system this way:

CONVENIENCE AND PRIVACY of ordering from your home with FREE shipping in the continental U.S.

CONFIDENCE in knowing that your order is being handled by trusted pharmacists and that your information is secure.

SAVINGS AND OFFERS found on VIAGRA.com that can also be redeemed at your local pharmacy or preferred online pharmacy with a valid prescription for VIAGRA.

Cialis and Levitra can, and probably have to, match the initiative immediately. Through programs for the three, online erectile dysfunction products can follow a system pioneered by companies such as Amazon.com Inc. (NASDAQ: AMZN) in which consumers can buy everything from books to consumer electronics to clothing. Perhaps the three drugs should have joined these other products years ago. It could have blunted the rise of the black market and made the sales of them easier for the consumer, a benefit that other categories of products discovered years ago.

The marketers at Cialis maker Eli Lilly & Co. (NYSE: LLY) and Levitra maker GlaxoSmithKline PLC (NYSE: GSK) are too intelligent and aggressive to allow Pfizer’s plan go unchallenged for too long.

All the men who were embarrassed about their erectile problems can now sneak on to the Internet, get their pills delivered to their homes, and, by the way, get three free pills in the process.

A new list compiled by Drugs.com for the first quarter of 2013 shows that all but one of the seven drugs with $1 billion in quarterly sales saw total sales gains. Only three of the wider list of the top 20 drugs in quarterly sales posted negative sales trends. You will notice that many of the drugs had negative unit (prescriptions) trends again in the first quarter, but this was seen by and large a year ago as well.

We used data from Drugs.com, and this represents the top-selling drugs and medicines measured as U.S. national sales through both retail and hospital channels. This list is for the first quarter of 2013, and we have provided an image of the top drug sales on a chart below.

Abilify by Otsuka Pharmaceutical Co. led the list, at $1.526 billion in quarterly sales with a 3.24% gain. What is interesting here is that the number of units sold in the quarter was shown to be down by 5.89% to 2.477 million units sold, despite a continual rise in total sales. This will seem sad to be the list leader to many people, because Abilify is prescribed as an add-on drug treatment for adults with unresolved symptoms of depression after at least six weeks on an antidepressant. It is also meant to be taken in addition to an antidepressant rather than as a standalone drug.

Nexium by AstraZeneca PLC (NYSE: AZN) was second on the list, at $1.458 billion in quarterly sales with a 1.21% gain. After a small uptick in dollars sold, there was actually a small drop of 2.47% in units to 6.667 million units in the quarter. Nexium is known as the Purple Pill to treat heartburn caused by acid reflux.

Cymbalta by Eli Lilly & Co. (NYSE: LLY) came in third on the list, with $1.296 billion in quarterly sales after a 5.65% gain. Cymbalta units fell by 2.09% to 6.502 million units. Cymbalya is meant to treat major depressive disorder (MDD), generalized anxiety disorder (GAD), for the management of diabetic peripheral neuropathic pain and fibromyalgia, and to manage chronic musculoskeletal pain due to chronic osteoarthritis pain and chronic low back pain.

Crestor by AstraZeneca PLC (NYSE: AZN) was fourth, with quarterly sales of $1.295 billion after a 1.59% gain. Unit sales were down by 2.93% to 4.106 million units in the first quarter. Crestor is prescribed (along with diet) to lower high cholesterol and to slow the buildup of plaque in arteries.

Advair Diskus by GlaxoSmithKline PLC (NYSE: GSK) came in at number five, at $1.277 billion in sales after a 6% rise. This was the first of the list with a per unit gain, with sales up 1.81% to 5.959 million units. Advair Diskus is for the treatment of asthma in patients four years and older. It is approved for adults with chronic obstructive pulmonary disease (COPD), including chronic bronchitis, emphysema or both.

Humira by Abbott Laboratories (NYSE: ABT) was ranked number six, with $1.217 billion in quarterly sales after a 0.91% gain. This drug’s unit sales were down by 5.68% to 631,000 units in the first quarter. Humira is prescribed for moderate to severe rheumatoid arthritis, moderate to severe chronic plaque psoriasis, moderate to severe Crohn’s disease, moderate to severe ulcerative colitis, ankylosing spondylitis, psoriatic arthritis and in moderate to severe polyarticular juvenile idiopathic arthritis.

Enbrel by Amgen Inc. (NASDAQ: AMGN) was the last of the top seven drugs with sales of more than $1 billion, at $1.075 billion in quarterly revenue. This was also the sole drug on the list that had a decline in total dollar sales, with a 1.22% drop. Enbrel even led the top drugs here on this list with a 6.83% decline to 969,000 units sold. Enbrel is indicated for moderate to severe plaque psoriasis, psoriatic arthritis and moderate to severe rheumatoid arthritis.

You probably noticed that there was a steady decline in unit sales in the first quarter. In most cases, this was also the case in the first quarter of 2012. It seems that the trend can be influenced by timing as well as by rotational use or by the public’s routine annual changes, more so than drug companies arbitrarily raising their prices each year to make up for lower unit sales.

We also have two runner-ups here that are close to $1 billion in quarterly sales. Remicade from Johnson & Johnson (NYSE: JNJ), under the old Centocor and Janssen unit, posted a 3.58% sales gain to $969 million. Copaxone from Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) posted a 1.98% sales gain to $926 million.

Read also: Viagra to Be Sold Online Soon

The earnings of Wells Fargo & Co. (NYSE: WFC) and J.P. Morgan Chase & Co. (NYSE: JPM) will be an early indication of the health of big banks. (WSJ)

Nasdaq OMX Group Inc. (NASDAQ: NDAQ) cuts the pay of CEO Robert Greifeld because of the botched Facebook Inc. (NASDAQ: FB) initial public offering. (WSJ)

J.C. Penney Co. Inc. (NYSE: JCP) will try to raise $1 billion. (WSJ)

The advertising director of AOL Inc. (NYSE: AOL) likely will move to Yahoo! Inc. (NASDAQ: YHOO). (WSJ)

Pfizer Inc. (NYSE: PFE) and GlaxoSmithKline PLC (NYSE: GSK) cut payments to doctors who are consultants. (WSJ)

Eli Lilly & Co. (NYSE: LLY) lays off a large part of its sales staff. (WSJ)

Royal Dutch Shell PLC (NYSE: RDS-A) increases efforts to cut theft of crude in Nigeria. (WSJ)

Lenders to Cyprus expect the costs of its bailout to nearly double. (NYT)

Portugal may need to ask its lenders for a second bailout. (FT)

Boeing Co. (NYSE: BA) faces a challenge getting the 787 back in service because of slow FAA clearance. (Bloomberg)

Citing very attractive stock valuations, despite the dramatic advance of the markets since the low last November, the Jefferies team list of stocks to buy is dominated by the large cap major pharmaceutical names. These stocks may prove to be solid investments for investors, given their liquidity and dividends. The list of pharmaceutical stocks to buy includes these names.

AbbVie Inc. (NYSE: ABBV) is the top pick on the Jefferies list. The analysts raise their price target from $45 to $50. The Thomson/First Call estimate for the stock is quite a bit lower at $37.50. AbbVie pays shareholders a 3.80% dividend.

Abbott Laboratories (NYSE: ABT) has earned a spot on the list. It is trading at less than 10 time earnings, and Jefferies raises its price target to $42 from $40. The Wall St. consensus estimate is $35.50. Investors receive a small 1.50% dividend.

Bristol-Myers Squibb Co. (NYSE: BMY) is a stock to buy. Due to the expanding profit margins and a quality pipeline, Jefferies ups its price target to $45 from $41. The consensus target for the stock is $36.25. Investors receive a 3.40% dividend.

Pfizer Inc. (NYSE: PFE) is another large cap name on the list. It recently received a breakthrough designation from the FDA for an experimental breast cancer pill. The Jefferies price target for Pfizer jumps to $33 from $31, while the consensus target is $31. Shareholders are paid a 3.30% dividend.

Zoetis Inc. (NYSE: ZTS) wraps up the Jefferies list of pharmaceutical stocks to buy. Its recent IPO that has performed extremely well. The price target on the stock is held steady at $40. The consensus price target is $38. Investors receive a tiny 0.80% dividend.

For investors holding other names and perhaps looking to switch, the Jefferies least-preferred stocks in the space are Eli Lilly & Co. (NYSE: LLY) and GlaxoSmithkline PLC (NYSE: GSK) on a valuation basis, and Merck & Co. Inc. (NYSE: MRK), due to its poor run in the research and development of new drugs.

While expecting solid earnings and forward guidance from their stocks to buy, the Jefferies team does not stray very far from their large cap bias. This makes good sense for investors looking to enter the sector because, in theory, it avoids the risks in smaller drug or biotech players. As we have advised recently, due to such a strong move in the markets, readers looking to buy these names may want buy half positions and look for a sell off to add the additional stock at a lower price.

In a new report out today, Bank of America Corp.’s (NYSE: BAC) Merrill Lynch pharmaceutical research team surveyed 75 U.S. physicians to assess current and anticipated treatment practices in diabetes, with the focus on DPP4 and GLP-1 drugs. Both are categories of diabetes drugs that doctors use to control the disease. The research showed that physicians are continuing to increase their use of these drugs as a percentage of total treatment.

The DPP4 drug class is very important for major U.S. pharmaceutical companies. For three of the top four companies, it represents sizable revenue.

Pharmaceutical giant Merck & Co. Inc (NYSE: MRK) is the hands-down winner in the DPP4 drug sweepstakes in the United States. Its lead diabetes drug Januvia controls 77% of prescriptions written for patients. Unfortunately, other companies want a larger share of that pie and are beginning to take sales away.

Bristol-Myers Squibb Co. (NYSE: BMY) and its diabetes drug Onglyza is starting to chip away at the Merck franchise. Currently it has a 16% share of the DPP4 drug market, and that piece of the pie is growing.

Eli Lilly & Co. (NYSE: LLY) runs a distant third, with its drug Tradjenta garnering a 7% share of the overall market. Again though, physicians surveyed indicated that the trend to other drugs is expected to continue, and the company is expected to continue to lose market share to its competitors.

One issue that could upset the entire market for this class of drugs was mentioned by the Merrill Lynch team. Although they did not go into great detail, they pointed out in their report that there is the potential for a Federal Drug Administration (FDA) investigation into the risk of pancreatitis for patients who use these drugs.

Physicians are also positive on a new line of inhaled insulin for both type 1 and type 2 diabetes patients. The company that looks to benefit the most from this brand of oral medication is MannKind Corp. (NASDAQ: MNKD). In today’s report, Merrill Lynch raises its price target on this very controversial company to $5. Closing yesterday at $3.33, this one could be a big win for investors. The Wall St. consensus price target for the stock is $4.

The world’s leading provider of diabetes drugs, Denmark based Novo Nordisk A/S (NYSE: NVO), has started to gain market share with the recently released drug Victoza. This comes at the expense of the exenatide franchise of drugs, which includes Byetta and Bydureon.

Large pharmaceutical companies are well aware of the overall implications of the increasing patient population suffering from type 1 and 2 diabetes. This is a large and growing overall part of their product sales. The fight between these companies will only intensify as new and easier methods for patient maintenance are brought to market.

J&J owns the rights to the drug and Bayer has licensed the rights to market the drug in Europe. Xarelto (rivaroxaban) is one of several drugs being promoted as replacements for warfarin, the standard blood-thinning agent for the past 50 years or so. AstraZeneca PLC (NYSE: AZN) and Eli Lilly & Co. (NYSE: LLY) already have drugs approved to treat what is called acute coronary syndrome.

There should be little impact on share price today, because an FDA panel already had rejected the drug for this expanded use in June of last year. J&J shares set a new 52-week high yesterday and closed up about 0.7%, at $77.20 in a new 52-week range of $61.71 to $77.28.

JMP Securities initiated coverage today on five biopharmaceutical stocks that may fit the bill, as far as having the strong pipelines and the cash on hand to continue to develop and market drugs with staying power. The stocks initiated with Market Outperform ratings are:

Affymax Inc. (NASDAQ: AFFY) is on the map with its top drug called Omontys (peginesatide). This injection is for the treatment of anemia in chronic kidney disease in adult patients on dialysis. The Thomson/First Call consensus price target is $30.

Alnylam Pharmaceuticals Inc. (NASDAQ: ALNY) engages in discovering, developing and commercializing novel therapeutics based on RNA interference (RNAi). The Wall St. consensus price target for the stock is $28.50.

Celgene Corp. (NASDAQ: CELG) is already a favorite among Wall St. analysts. Their lead drug is Revlimid, an oral immunomodulatory drug for the treatment of patients with multiple myeloma and myelodysplastic syndromes. The consensus estimate for this very popular name is $114.

Onyx Pharmaceuticals Inc. (NASDAQ: ONXX), through its collaboration agreement with Bayer HealthCare Pharmaceuticals, develops and markets the Nexavar (sorafenib) tablet, a multiple kinase inhibitor for the treatment of liver cancer and advanced kidney cancer. The consensus price target is $100.

Pharmacyclics Inc. (NASDAQ: PCYC) operates as a clinical-stage biopharmaceutical company focusing on developing and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. The consensus estimate is $80.

Each of these stocks is widely followed on Wall St. and considered some of the best in class. One other enticing part of investing in quality biopharmaceutical stocks is that, due to the huge cost of new drug development, they are often potential takeover candidates. Large pharmaceutical companies like Pfizer Inc. (NYSE: PFE), Eli Lilly & Co. (NYSE: LLY) Merck & Co. Inc. (NYSE: MRK) and Bristol-Myers Squibb Co. (NYSE: BMY) often find it more cost effective to purchase new drugs and pipelines by buying the company. Perhaps one of these stocks could be on their radar screens.