PFE (Pfizer) How high will it go? Message Board

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Biotech / Medical : PFE (Pfizer) How high will it go?

PFE 24.35

-0.3%

3:03 PM EST

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To: C.K. Houston who wrote (8159)	7/20/1999 3:33:00 PM
From: Frank Brisebois	Read Replies (2) of 9523

CK: Nice to see you here in PFE land. Merrill Lynch rec. accumlate on PFE and hold long term. ML still mantains price target of 44 dollars. 12 Month Price Objective: $44 Estimates (Dec) 1998A 1999E 2000E EPS: $0.67 $0.83 $0.97 P/E: 56.4x 46.1x 39.0x EPS Change (YoY): 22.4% 16.9% Consensus EPS: $0.82 $0.97 (First Call: 15-Jul-1999) Q3 EPS (Jun): $0.17 $0.22 Cash Flow/Share: $0.79 $0.96 $1.12 Price/Cash Flow: 47.9x 39.4x 33.8x Dividend Rate: $0.25 $0.32 $0.35 Dividend Yield: 0.7% 0.8% 0.9% Opinion & Financial Data Investment Opinion: A-2-1-7 Mkt. Value / Shares Outstanding (mn): $148,716.6 / 3,933 Book Value/Share (Dec-1998): $2.23 Price/Book Ratio: 17.0x LT Liability % of Capital: 6.0% Est. 5 Year EPS Growth: 18.2% Stock Data 52-Week Range: $50 1/16-$28 11/16 Symbol / Exchange: PFE / NYSE Options: AMEX Institutional Ownership-Spectrum: 16.6% Brokers Covering (First Call): 28 ML Industry Weightings & Ratings** Strategy; Weighting Rel. to Mkt.: Income: Overweight (07-Mar-1995) Growth: Overweight (21-Jan-1997) Income & Growth: Overweight (07-Mar-1995) Capital Appreciation: Overweight (03-Oct-1995) Market Analysis; Technical Rating: Below Average (25-Jun-1999) Intermediate term opinion last changed on 19-Feb-1999. The views expressed are those of the macro department and do not necessarily coincide with those of the Fundamental analyst. For full investment opinion definitions, see footnotes. Investment Highlights: · Pfizer reported Q2 EPS of $0.18 versus $0.16 (+12.5%), a penny better than our estimate and Street consensus. We are adjusting our 1999 EPS by $0.01 to $0.83 to account for the outperformance. The company remains comfortable in the range of $0.80-$0.83. Our 2000 estimate is unchanged. · Last quarter, PFE management warned that Q2 EPS might increase by only single digits, so the double-digit increase the company reported was a bit surprising. The quarter was highlighted by the exceptional launch of Celebrex as well as strength across most product lines. · The stock currently trades at a 26% premium to the drug group and a 43% premium to the market on 2000 EPS. Our $44 price objective assumes that the stock retains its 99 multiple on 2000 EPS. Fundamental Highlights: · Total U.S. pharmaceutical revenues increased 10% (27% if Viagra is excluded) in the quarter, while worldwide pharma revenues increased 16% on strong volume growth, 1.2% price effect and a –0.8 currency effect. Bulletin United States Pharmaceuticals 19 July 1999 Steven C. Tighe First Vice President Gregory B. Gilbert Assistant Vice President Pfizer Inc More than a Single-Digit EPS Company ACCUMULATE Long Term BUY Reason for Report: Second Quarter Results Merrill Lynch & Co.

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