Buy Pfizer; target of Rs 4705: ICICI Securities
ICICI Securities is bullish on Pfizer recommended buy rating on the stock with a target price of Rs 4705 in its research report dated June 15, 2020.
June 18, 2020 / 08:06 AM IST
ICICI Securities research report on Pfizer
Pfizer Limited’s (PFL) Q4FY20 performance was weak during the quarter. Revenue declined 6.3% YoY to Rs5.0bn (I-Sec: Rs6.3bn). Revenue was impacted by divestment of two brands in Q3FY20 and COVID-19. Adjusted growth was 3.5%. EBITDA margin declined 650bps YoY (-310bps QoQ) to 21.7% (lowest in several quarters) due to lower revenue. Adjusted PAT declined 5.9% YoY to Rs1.0bn. Dichotomy between primary and secondary sales continue as AIOCD data suggests revenue growth for the company was 12.5%. We expect this disparity to normalise in the coming quarters.
We remain positive on the company’s growth visibility with exposure only in domestic formulations and strong balance sheet with deep cash reserves, however, pressure due to COVID-19 would restrict growth in the near term as the company’s product portfolio is largely acute (~75%). Maintain BUY.
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