BMO Capital upgraded Pfizer (NYSE: PFE) from Market Perform to Outperform with a price target of $36.00 (from $33.00) saying they see the recent Hospira takeover as a value inflection point.

Analyt Alex Arfaei said cited three reasons the Hospira takeover serves as a value inflection point: 1) It adds significant near-term EPS accretion at a reasonable price, 2) it strengthens Pfizer’s leadership position in the multi-billion dollar biosimilar market; and 3) it increases the probability, thus adds optionality value, for a potential split of the company into an Innovative Products business and an Established Products business.

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Shares of Pfizer closed at $33.17 yesterday.