Credit Suisse analyst Vamil Divan downgraded Pfizer (PFE) to Neutral and lowered his price target for the shares to $36 from $38.
The shares closed yesterday up 26c to $33.62. The analyst, who notes he’s long been a supporter of Pfizer and continues to see opportunities for upside over the long-term, believes the stock’s upside drivers are more limited over the next year.
Divan prefers other names in the Major Pharmaceuticals space, such as Johnson & Johnson (JNJ) and Merck (MRK).
Growth of Pfizer’s Ibrance is slowing while global Prevnar sales are flat to declining, Divan tells investors in a research note. He adds that the company is facing two meaningful patent expirations over the next 18 months with Viagra, Lyrica.
