Citi Maintains High Risk on Pfizer (PFE)

Citi is out with its report today on Pfizer PFE, maintaining High Risk. In a note to clients, Citi writes, ".We rate Pfizer shares High Risk given the continued deterioration of its base business in the US, execution risk on the pipeline, and potential restructuring issues. Additional risks to Pfizer's price target include: 1) slower-than-expected execution of divestitures of non-pharma units; 2) increasing competition in emerging markets from branded and generic players; 3) pricing pressures/higher discounts and rebates demanded by payors and governments & 4) setbacks to the late-stage pipeline, including negative clinical trial results and delays in product approvals. We also note that sources of upside risk include: 1) timely approval & outperformance from late-stage pipeline assets (tofacitinib, apixaban, axitinib, crizotinib, bosutinib); 2) improvement in performance of lagging products (e.g. Lyrica/Chantix); 3) greater than expected cost savings from the WYE acquisition; & 4) Faster-than-expected in-roads into emerging markets." Citi maintains a $23 PT on PFE. At the time of posting, shares of PFE were trading pre-market at $21.21, up 0.14% from Wednesday's close.