Considering the health care sector has been on fire for the first quarter of 2015, analysts are putting more value in biotechs and big pharmaceuticals. Credit Suisse is no different. The brokerage firm released a report that detailed its top picks for pharmaceutical stocks for the rest of 2015.

Credit Suisse revised its estimates going forward after the first quarter. Bristol-Myers Squibb Co. (NYSE: BMY) and Pfizer Inc. (NYSE: PFE) remain the firm’s top picks. The brokerage firm has published updated models for each of its large U.S. pharmaceutical companies following first-quarter earnings, as well as other recent news flow.

While continuing to prefer Bristol-Myers and Pfizer as the top picks, Credit Suisse also has AbbVie Inc. (NYSE: ABBV) rated as Outperform. However, the firm’s Vamil Divan remained Neutral on Merck & Co. Inc. (NYSE: MRK), Johnson & Johnson (NYSE: JNJ) and Eli Lilly & Co. (NYSE: LLY).

Credit Suisse raised its price targets for Bristol-Myers (to $75 from $70), Eli Lilly (to $72 from $71), Merck (to $62 from $60) and Pfizer (to $37 from $36), and reduced the price target for Johnson & Johnson (to $108 from $110), while the AbbVie price target of $69 is unchanged.

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Bristol-Myers Squibb

Bristol-Myers recently announced plans to invest in Dutch biotech company named uniQure, in order to get access to their coveted gene therapy technology platform for cardiovascular diseases. The two companies agreed to work together to battle these diseases with gene therapy. According to the Credit Suisse report:

Increased near-term immuno-oncology (I-O) estimates following the early stop of CheckMate ‘057 for Opdivo in non-squamous non-small cell lung cancer and longer-term estimates given continued positive newsflow in the I-O space. Also accounted for recent update to Erbitux agreement with Eli Lilly. Our operating margins in 2023 now approach 45% and, along with a 1.5% terminal growth rate and 7% WACC, help drive our $75 DCF-derived target price.

Shares of Bristol-Myers were down 0.5% Tuesday to $65.02, in a 52-week trading range of $46.30 to $69.20. The stock has a consensus analyst price target of $69.81.

Pfizer

Pfizer is the fifth-best Dow gainer so far this year at 11.2%. Many investors are operating under the premise that Pfizer is on the path to break up into two, or maybe even into three, companies. Its 3.2% yield also remains a draw. Still, patent cliffs are a constant challenge, and they are forcing Pfizer and other drug giants to look for opportunities in emerging pharma, biotech and internationally. Credit Suisse said in its report:

Most noteworthy change was increase in near-term and longer-term estimates for Ibrance in light of solid rollout to-date and early stop of PALOMA-3 trial due to positive efficacy. Note that our published numbers for PFE are for the stand-alone company and do not yet incorporate the HSP acquisition that is expected to close in 2H 2015.

Pfizer shares were relatively flat at $34.32, in a 52-week trading range of $27.51 to $35.53. The consensus analyst price target is $37.01.

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Wall Street had started to become concerned over lower expectations for the AbbVie’s new hepatitis C therapy Viekira Pak, when the biggest concern was really a price war with competitors. Toss in a $21 billion purchase recently of Pharmacyclics, which some have said cost way too much, and some volatility has crept into the stock. Credit Suisse noted in its report:

Increased near-term Humira growth projection while adding more conservatism to our longer-term estimates (Humira 2017-2023 CAGR now at -8% from previous -3%). Also incorporated PCYC into our Abbvie estimates given expected deal closure this quarter.

Shares of AbbVie were down 0.6% at $64.32. The consensus price target is $72.09, and the 52-week trading range is $50.83 to $70.76.

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Merck

Merck has been hit hard since printing a high in late January, and it may be offering new investors a very good entry point. It also remains a leading health care company that is on the focus lists of many top analyst firms. The company’s numerous prescription medicines, vaccines, biologic therapies and consumer care and animal health products are provided to customers in more than 140 countries. In the Credit Suisse report, the firm detailed:

Raised Januvia expectations given strong quarter and apparently clean TECOS results. Also now give MRK incremental contribution from the five biosimilars that they have in phase 3, but lowered our longer-term estimates for Cubicin and Remicade.

Merck shares were down 0.5% to $60.35. The consensus price target is $65.22. The 52-week trading range is $52.49 to $63.62.

Johnson & Johnson

Johnson & Johnson recently raised its common stock dividend. What investors need to know here is that the company’s traditional of dividend hikes is now on a streak that has lasted for more than 50 consecutive years. The payout recently was increased by 7.1%, from $0.70 per share to $0.75 per share. This will generate an annualized dividend payout hike to $3.00 per share from $2.80 per share. Credit Suisse explained in its report:

Lowered Remicade estimates given increased likelihood of near-term biosimilar competition in the US, although we realize the legal process is still playing out in this case. On the positive side, we did increase Invokana estimates following a strong quarter.

Shares were down 0.5%, at $99.89 on a 52-week trading range of $95.10 to $109.49. The consensus price target is $109.16.

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Eli Lilly

Eli Lilly is surprisingly out of consensus with portfolio managers at mutual funds and hedge funds, or what is known as the buy side. It also has more Neutral ratings than Buy ratings on Wall Street. The company easily beat analysts’ earnings expectations for the first quarter. The Credit Suisse report had this to say about the company:

Baked in recent update to Erbitux agreement with Bristol-Myers and also modestly increased our estimates for their insulin franchise and Cyramza.

Shares of Eli Lilly were down 1.2% to $72.21. The consensus analyst price target is $79.47. In the past year, shares have traded between $57.81 and $77.46.

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