Pharmaceutical giant Pfizer Inc. (
) on Monday caught a big downgrade from analysts at Leerink
The firm said it cut its rating on PFE from "Outperform" to
A Leerink analyst commented, "From here, we believe the upside
driver for PFE's EPS expectations is the already announced
restructuring and prospect of associated share repurchase as well
as the potential to improve total shareholder returns via increases
in the dividend (the targeted 40% payout ratio implies avg growth
of 7-8% over the next two years). Upside surprises, such as a
material delay to a launch of Lipitor by Ranbaxy, are unlikely but
would only represent a temporary boost to earnings, in our view.
While PFE remains a low-risk defensive story given its massive cash
flows, we see limited upside to our pipeline and net income
forecasts from here."
Pfizer shares fell $.15, or -0.8%, in premarket trading
The Bottom Line
Shares of Pfizer (
) have a 4.00% dividend yield, based on Friday's closing stock
price of $19.99. The stock has technical support in the $17-$18
price area. If the shares can firm up, we see overhead resistance
around the $21-$22 price levels.
Pfizer Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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