Pfizer Inc. (NYSE: PFE) is scheduled to report its first-quarter financial results before the markets open on Tuesday. Thomson Reuters has consensus estimates calling for $0.55 in earnings per share (EPS) on $12.00 billion in revenue. In the same period of last year, Pfizer posted EPS of $0.51 and $10.86 billion in revenue.
This is a top global pharmaceutical pick at Jefferies. Pfizer has a very strong pipeline, and being the world’s largest drug manufacturer by sales value supports the Wall Street notion that the company can generate higher long-term revenues through the accelerated growth of its new drugs over the next five years.
The Treasury Department announced new rules for corporate tax inversions, which effectively scuttled Pfizer’s deal with Allergan. With the deal over, not only are the risk arbitrage funds buying the stock back, but some felt there was as much as a $5 weight on the stock. The Jefferies analysts feel that investors can once again focus on the sum-of-the-parts story, which they feel is very compelling.
Pfizer has announced that it is starting 20 clinical trials this year, and more soon after, on treatments to conquer cancer, as it also seeks to gain leadership in one of the hottest and most lucrative areas of medicine. Hedge funds seem to like the stock as a total of 22 own it now.
A few analysts weighed in on Pfizer ahead of the earnings report:
- Leerink Swann has a Market Perform rating.
- BMO Capital Markets reiterated a Buy rating.
- Goldman Sachs reiterated a Neutral rating with a $35 price target.
- S&P Equity Research reiterated a Buy rating.
- Morgan Stanley initiated coverage with an Equal Weight rating and a $35 price target.
So far in 2016, Pfizer has performed more or less in line with the broad markets, with the stock up over 2%. Over the past 52 weeks, the stock is practically flat.
Shares of Pfizer were trading at $32.68 on Monday, with a consensus analyst price target of $37.90 and a 52-week trading range of $28.25 to $36.46.
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