Analysts' Upgrades, Downgrades: Pfizer

Change in Ratings

Bristol-Myers Squibb (BMY Quote) initiated as Neutral at BofA. Believes company has three $1 billion-potential franchises that are estimated to collectively contribute almost $3.6B in annual revenue by 2013 and two cost-savings initiatives should lead to meaningful EPS growth ahead of the patent cliff. However, Bristol faces the largest potential patent hit in the group, with about 30% exposure to sales in 2011. Price target of $21 on 10.5 times 2009 EPS, a premium to the S&P of 9%, in line with the historical average.

Clorox (CLX Quote) upgraded at Goldman Sachs to Neutral from Sell. See improved outlook for gross margins based on falling spot prices for key inputs in trash bags and plastic bottles. Price target raised to $64 from $58.

Estee Lauder (EL Quote) downgraded at Goldman Sachs to Sell from Neutral based on high exposure to discretionary spending. See increased potential for sales and earnings weakness in the intermediate term. Price target cut to $31 from $40.

Energizer (ENR Quote) coverage initiated at Goldman Sachs with a Neutral rating and $45 price target. Potential cyclical weakness in battery demand and expect 2009 earnings to decline 14% despite Playtex merger synergies.

Eli Lilly (LLY Quote) initiated Neutral at BofA with a $36 price target, based on a P/E of 8.5 times 2009 EPS, a 5% discount to peers. BofA likes intriguing longer-term pipeline and ImClone (IMCL Quote) acquisition. While Lilly doesn't have a formal cost-savings plan to focus on, management continues to change the composition of its expenses, moving toward a more variable cost base. Lilly's patent cliff doesn't begin until late 2011: Zyprexa, Gemzar, Cymbalta and Evista all expire between 2011 and 2014 and represent 50% of sales.