NEW YORK (TheStreet) -- Shares of Pfizer (PFE) - Get Report were retreating in late-morning trading on Monday as Bernstein said the pharmaceutical company is likely to pursue other deals now that it's no longer splitting into two separate entities.
The firm has an "outperform" rating on the New York City-based company.
Earlier today, Pfizer said it's no longer pursuing its plan to split Pfizer Innovative Health and Pfizer Essential Health into two separate companies.
The decision isn't expected to impact its 2016 forecast.
In the past, Bernstein said the company has relied on M&As to grow and refill its pipeline. But aside from any possible mergers, there's not very much "immediately ahead of the stock" that seems meaningful, the firm added.
"Perhaps the best thing going for Pfizer at the moment is its low valuation," Bernstein said in an analyst note, according to Barron's.
Pfizer has some growth prospects ahead of it, but because its pipeline is relatively thin, it's likely that continued M&As will be baked into Pfizer's future, the firm said.
(Pfizer is held in the Dividend Stock Advisor portfolio. See all of the holdings with a free trial.)
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates PFIZER INC as a Buy with a ratings score of B. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: PFE