Will This New Rating Help Pfizer (PFE) Stock Today?

Story updated at 9:55 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Deutsche Bank initiated coverage of Pfizer (PFE)  Wednesday with a "buy" rating.

Shares of Pfizer gained 0.7% to $29.42 in morning trading.

The firm set a price target of $34 for the drug manufacturer. Pfizer has a strong financial position, and an attractive valuation and dividend, according to Deutsche Bank analysts.

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Separately, TheStreet Ratings team rates PFIZER INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate PFIZER INC (PFE) a BUY. This is driven by some important positives, 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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PFE has a quick ratio of 2.03, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for PFIZER INC is currently very high, coming in at 85.17%. It has increased significantly from the same period last year. Along with this, the net profit margin of 22.92% is above that of the industry average.
  • Net operating cash flow has slightly increased to $4,087.00 million or 6.71% when compared to the same quarter last year. In addition, PFIZER INC has also modestly surpassed the industry average cash flow growth rate of -1.19%.
  • PFIZER INC's earnings per share declined by 10.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PFIZER INC increased its bottom line by earning $1.65 versus $1.20 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $1.65).
  • You can view the full analysis from the report here: PFE Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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