Goldman Sachs Removes Pfizer (PFE) from CL-Buy List, AbbVie (ABBV) Added to CL-Buy List

December 3, 2013 8:38 AM EST
Get Alerts PFE Hot Sheet
Price: $32.03 -0.09%

Rating Summary:
    13 Buy, 12 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Goldman Sachs downgraded Pfizer (NYSE: PFE) from Conviction Buy to Buy with a price target of $35.00 (from $34.00). AbbVie (NYSE: ABBV) was raised to Conviction Buy and its price target was raised to $60 (from $57).

"We remove PFE from the CL but maintain our Buy rating and raise our 12-month target price to $35 for 9% upside (12% on a total return basis). We simply see greater upside to ABBV (24%, 27% on a total return basis), which we add to the CL," said analyst Jami Rubin.

"We have long been advocates of the PFE breakup/ spin story, having argued for such a restructuring as early as November 2008. While as previously discussed we continue to expect PFE to move down the path of a full break up by 2017 (announcement likely in 2015/2016), we no longer see our call as out of consensus," continued the analyst.

On AbbVie Rubin said, "With an $18 bn revenue base, ABBV has more pipeline leverage than most other mid-sized biopharma peers and is entering a long period of robust clinical trial read-outs beginning 4Q13. ABBV shares have outperformed its peer group YTD (up 42% vs. large cap pharma peers 27%), but the stock is still perceived as a one-product story. In our view, ABBV is a pharma converging with biotech, with one of the least vetted pipelines in the sector. We believe that with data read outs over the next 6-12 months, there will be greater recognition of ABBV's pipeline, leading to a re-rate of the stock."

For an analyst ratings summary and ratings history on Pfizer click here. For more ratings news on Pfizer click here.

Shares of Pfizer closed at $31.83 yesterday.

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