Pfizer Upgraded at Cowen Ahead of Possible M&A; Roche Downgraded
- Sees only a few targets as meeting PFE’s criteria to bolster GIP business; Glaxo may be most attractive given shared ViiV asset, strong vaccines ops, large number of drugs in development
- Says investors have been overly focused on potential breakup of PFE, though could be “second parachute"; sees PFE shrs undervalued by 3%-9% based on sum of the parts
- Raises PFE to outperform from market perform, PT to $43 from $35
- PFE has 17 buys, 5 holds, 2 sells; avg PT $39: Bloomberg data
- Cowen also cut Roche to market perform from outperform, PT to $35 from $42; sees increased risk to immuno-oncology/chemotherapy combinations
- NOTE: May 20, Pfizer Bid for Glaxo Would Draw More Scrutiny vs Astra: Citi {NSN NONCU56K50XT<Go>}