Pharma giant Pfizer Inc. (
) late Monday saw its price target and earnings estimates slashed
by analysts at Deutsche Bank.
The firm lowered its target for PFE from $25 to $20, citing "the
low visibility of future revenue growth." That new target still
represents a 33% upside for the stock, which had closed at $14.93
Additionally, the analyst lowered its full-year 2011 earnings
estimate for PFE from $2.31 to $2.25 per share. On average, Wall
Street analysts expect $2.26 per share for the year.
Still, Deutsche maintained its "Buy" rating on the stock, noting
"the current low multiple on the stock, coupled with the visible
earnings growth, strong balance sheet, and high dividend yield
suggest that there is limited downside in the stock at current
Pfizer shares rose 8 cents, or +0.5%, in premarket trading
The Bottom Line
We recently removed shares of PFE from our recommended list back on
May 25, when the stock was trading at $15.22. The company has a
4.82% dividend yield, based on last night's closing stock price of
$14.93. The stock has technical support in the $12-$13 price area.
If the shares can firm up, we see overhead resistance around the
$17-$18 price levels. We would remain on the sidelines for now.
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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