Centrum is bullish on Pfizer has recommended buy rating on the stock with a target price of Rs 2300 in its research report dated November 17, 2017.
Centrum's research report on Pfizer
We upgrade Pfizer to Buy from Hold rating and revise our TP of Rs2,300 (earlier Rs1,690), based on 23x March’19E EPS of Rs100.0. Pfizer’s Q2FY18 results exceeded our and consensus estimates. The drug maker reported a 2% YoY growth in revenues, while margin improved by 1,290bps to 29.3% and net profit grew 90%YoY. We expect the company to deliver superior performance due to strong growth in its major brands. Recently, the company launched new line extension Corex-T. Pfizer would launch Meronem and Neksium in India, which are acquired from Astra Zeneca Pharma. The key downsidw risk to our assumption is slowdown of domestic pharma market growth and the additional brands coming under price control.
Pfizer has closed down its Thane manufacturing facility as a rationalisation measure. We upgrade Pfizer to Buy from Hold rating and revise our TP to Rs2,300 (earlier Rs1,690) based on 23x March’19E EPS of Rs100.0 and a upside of 19.4%. We have revised our FY18E and FY19E EPS by 35% and 36% respectively in view of additional revenues from Meronem and Neksium.
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