Pfizer (PFE) Received its Third Buy in a Row

By Austin Angelo

After Credit Suisse and Merrill Lynch gave Pfizer (NYSE: PFE) a Buy rating last month, the company received another Buy, this time from Cantor Fitzgerald. Analyst Louise Chen reiterated a Buy rating on Pfizer today and set a price target of $53. The company’s shares closed yesterday at $39.37.

Chen commented:

“We reiterate our OW rating and think respectable earnings growth, driven by Innovative Medicines, pipeline advancements, and return of capital to PFE’s shareholders — above the industry average — are all underappreciated. Therefore, we believe multiple expansion and upward earnings revisions should drive PFE shares higher. Valuation Summary We use a blend of DCF and multiples (EV/EBITDA) analysis to get to our 12-month price target of $53.”

According to TipRanks.com, Chen is a 4-star analyst with an average return of 9.3% and a 37.0% success rate. Chen covers the Healthcare sector, focusing on stocks such as Teva Pharmaceutical Industries Limited, Bausch Health Companies Inc, and Amneal Pharmaceuticals Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Pfizer with a $49.40 average price target.

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Based on Pfizer’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $13.98 billion and GAAP net loss of $394 million. In comparison, last year the company earned revenue of $12.91 billion and had a net profit of $3.56 billion.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. Most recently, in February 2019, Mikael Dolsten, the President R&D of PFE bought 309,462 shares for a total of $9,516,355.

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