Jefferies Names Top 2015 Pharmaceutical Picks (PFE) (NVS) (more...)

Jefferies Pharmaceuticals analyst Jeffrey Holford issued his top picks in the sector for 2015 while raising his price target on a host of names.

Pfizer (NYSE: PFE) and Novartis (NYSE: NVS) are "Top Picks" in the U.S. and US and Europe, respectively. They also point to Bayer, AbbVie (NYSE: ABBV) and AstraZeneca plc (NYSE: AZN) to make up the remainder of our "Top 5 for 2015" list.

"We expect Pfizer to outperform in 2015 based on an early approval for palbociclib and through deployment of its OUS cash into M&A at a
minimum," Holford said. "We no longer see an inversion as the preferred M&A route for Pfizer to optimize GEP prior to separation in 2017. Novartis is attractive based on positive earnings momentum associated with reorganization of the business, aggressive cost management and expected delivery of late-stage R&D assets (LCZ696, secukinumab, Relaxin)."

On Bayer, AbbVie and AstraZeneca plc, the analyst believes all of these names have strong catalyst sets and valuation drivers that could deliver outperformance in 2015.

Meanwhile, the firm is putting Lilly & Co. (NYSE: LLY), Novo (NYSE: NVO), Sanofi (NYSE: SNY) and Merck (NYSE: MRK) under the umbrella of stocks that they fundamentally like, but all of which have material overhangs going in to 2015, which could present better entry points into the shares.

Stock target hikes:

• Abbott (NYSE: ABT) (Buy) raised to $52
• AbbVie (NYSE: ABBV) (Buy) raised to $80
• AstraZeneca plc (NYSE: AZN) (Buy) raised to 5,500p
• Bayer (Buy) raised to €140.00
• Bristol-Myers Squibb (NYSE: BMY) (Hold) raised to $54
• Eli Lilly (NYSE: LLY) (Hold) raised to $75
• GlaxoSmithKline (NYSE: GSK) (Hold) raised to 1,400.00p
• Johnson & Johnson (NYSE: JNJ) (Hold) raised to $114
• Merck & Co. (NYSE: MRK) (Hold) raised to $65
• Novartis AG (NYSE: NVS) (Buy) raised to CHF110.00
• Novo Nordisk (NYSE: NVO) (Hold) raised to DKK300.00
• Pfizer (NYSE: PFE) (Buy) maintained at $40
• Roche (Buy) raised to CHF335.00
• Sanofi (NYSE: SNY) (Hold) raised to €81.00
• Zoetis, Inc. (NYSE: ZTS) (Buy) maintained at $53

Buy Abbott Labs (NYSE: ABT) price target of $52.00

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

Shares of Abbott Labs closed at $45.68 yesterday.

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