UPDATE - Barclays Downgraded Pfizer (PFE) to Equalweight; Inferior Revenue Recovery Post 'Patent Cliff' Through 2020
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Price: $27.79 -1.59%
Rating Summary:
14 Buy, 20 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
Rating Summary:
14 Buy, 20 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
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UPDATE - Barclays downgraded Pfizer (NYSE: PFE) from Overweight to Equalweight. PT cut $2 to $19.
Barclays analyst said, "As the majority of our peers rate PFE to outperform the group, we expect this downgrade to be contested. Through year's end, we foresee limited potential for upside surprises from R&D catalysts. Top-line data from Tofacitinib to be presented at ACR has already been released, and there may be greater risk for negative surprises from a safety perspective. News from Eliquis would likely affect PFE less compared to partner BMY as it has a greater sales base to maintain. In the long term, we estimate Pfizer's top line and EBIT to each decline by -2.7% in CAGR over the period of FY10A-15E. During the post-"cliff" period of FY15E-20E, we project that Pfizer's top line and EBIT do recover but they do so at the slowest pace among peers (1.0% in top-line CAGR and 1.4% for EBIT). PFE's pharma business would be unlikely to recover to the top-line levels of 2010 in the next decade despite the potential successes of Eliquis, Xalkori, and other late-stage assets. At a dividend yield of 4.4% (lower than that of Eli Lilly (NYSE: LLY), Merck (NYSE: MRK), and Bristol-Myers (NYSE: BMY)), and with limited near-term upside and a long-term decline of the core business, we are less confident of the stock's potential for outperformance heading into Lipitor's expiry."
To see more ratings changes on PFE, Click Here
Barclays analyst said, "As the majority of our peers rate PFE to outperform the group, we expect this downgrade to be contested. Through year's end, we foresee limited potential for upside surprises from R&D catalysts. Top-line data from Tofacitinib to be presented at ACR has already been released, and there may be greater risk for negative surprises from a safety perspective. News from Eliquis would likely affect PFE less compared to partner BMY as it has a greater sales base to maintain. In the long term, we estimate Pfizer's top line and EBIT to each decline by -2.7% in CAGR over the period of FY10A-15E. During the post-"cliff" period of FY15E-20E, we project that Pfizer's top line and EBIT do recover but they do so at the slowest pace among peers (1.0% in top-line CAGR and 1.4% for EBIT). PFE's pharma business would be unlikely to recover to the top-line levels of 2010 in the next decade despite the potential successes of Eliquis, Xalkori, and other late-stage assets. At a dividend yield of 4.4% (lower than that of Eli Lilly (NYSE: LLY), Merck (NYSE: MRK), and Bristol-Myers (NYSE: BMY)), and with limited near-term upside and a long-term decline of the core business, we are less confident of the stock's potential for outperformance heading into Lipitor's expiry."
To see more ratings changes on PFE, Click Here
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