The firm said investors still need to be selective in the space, however, naming two top ideas in Merck and AbbVie . Credit Suisse says U.S. pharma as a group is trading at a price-earning ratio of 16 times to 17 times while defensive sectors utilities and consumer staples have 18-20 P-E ratios, on average. For AbbVie, it sees 11% upside from here, noting it has the "highest dividend yield among peers." "As such, we believe large-cap biopharma should remain a solid outperformer in the coming months, with portfolios requiring diversity in the defensive names. If markets rally on further clarity, we see our higher-growth names, such as Eli Lilly, being insulated from the rotation away from defensives and back into growth names."

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