Pfizer - Rating – Buy; Target Price – Rs1,600 - Centrum

- We expect Pfizer to report revenue growth of 7.8%YoY but revenue decline of 7.4%QoQ to Rs2.77bn. We expect the pharma business to grow at 6.9% YoY to Rs2.35bn from Rs2.20bn. We expect other op. income to decline by 12.5%YoY to Rs320mn from Rs366mn. The lower growth of pharma business is attributed to trade related issues during the quarter.

- We expect Pfizer's EBIDTA margin to improve by 190bps YoY to 17.5% from 15.6%.

- Merger of Wyeth India with Pfizer India has been announced. The recommended merger ratio is 10 shares of Wyeth for 7 shares of Pfizer.

- The company has declared and paid a special dividend of Rs360 (3,600%) per share.

- We expect Pfizer to report 15.6%YoY growth in net profit before EO items at Rs500mn.

- Our target price of Rs1,600 is based on 18xDec'15 EPS of Rs88.9.

Source : Equity Bulls

Keywords