Goldman Sachs analyst Jami Rubin downgraded Eli Lilly (LLY) to Neutral and cut her price target for the shares to $95 from $98. The drugmaker closed Friday up 59c to $86.98.

The analyst continues to like Lilly's long-term setup given its “diversified topline and margin expansion story,” but she believes this thesis is now well understood and better appreciated in valuation. Further, the risk around the company's diabetes franchise, particularly Trulicity, could be underappreciated with oral semaglutide readouts from Novo Nordisk (NVO) in 2018, Rubin tells investors in a research note.

The analyst sees potential downside risk to estimates.