Buy Pfizer, target price Rs 5314: ICICI Securities

ICICI Securities has buy call on Pfizer with a target price of Rs 5314. The current market price of Pfizer is Rs 4481.55.
Time period given by analyst is one year when Pfizer Ltd. price can reach defined target.

Pfizer Ltd., incorporated in the year 1950, is a Large Cap company (having a market cap of Rs 20591.05 Crore) operating in Pharmaceuticals sector.


Pfizer Ltd. key Products/Revenue Segments include Pharmaceuticals, Sale of services and Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Standalone Total Income of Rs 694.16 Crore, up 6.58 % from last quarter Total Income of Rs 651.29 Crore and up 14.16 % from last year same quarter Total Income of Rs 608.06 Crore. Company reported net profit after tax of Rs 143.91 Crore in latest quarter.

Investment Rationale
The brokerage cuts earnings estimates by 2-3% for FY23E-FY24E due to marginal tweak in revenues and operational cost estimates. The recent corrections in stock prices make valuations attractive, and hence, the brokerage upgrades to BUY with a revised target price of Rs5,314/share based on 34x Sep’23E earnings (earlier: Rs5,178/share on 35x FY23E). Key downside risks are: addition of key drugs in NLEM, product concentration, government intervention, and presence of unlisted promoter company.

Promoter/FII Holdings
Promoters held 63.92 per cent stake in the company as of 31-Dec-2021, while FIIs owned 8.3 per cent, DIIs 8.85 per cent.