Pfizer's PT Raised To 423 By Deutsche Bank

Deutsche Bank has published a "company update" on Pfizer Inc. PFE after the company displayed results due to forced R&D fund cutting as suggested by Deutsche Bank in November 2009. In the report, Deutsche Bank writes "We are raising our price target on PFE from $20 to $23, based upon a higher target multiple of 9.9 times, versus 9.1 previously, due to higher conviction on 2012 EPS guidance and our estimate. This greater visibility stems from the commitment to cut R&D speding further than previously forecast. In addition, the company's increased return of cash to shareholders should also raise the mutiple. We argued in our industry consolidation report in late November 2009, that the industry would be forced to cut R&D spending given the poor returns. This is precisely what has been happening at PFE, is now accelerated, and we believe will likely put pressure on other companies to do the same." Deutsche Bank maintains its Buy rating and has raised the price target on Pfizer from $20 to $23. Pfizer closed yesterday at $19.22.