Pfizer, Inc. (PFE) is the world’s largest pharmaceutical company in terms of sales. In 2007, Pfizer posted sales from continuing operations of $48.4 billion, which was flat from 2006.

Although we believe Pfizer continues to face an uphill battle in growing its top-line given the company’s sheer size and lack of a significant pipeline, near-term earnings growth will come in the form of cost-cutting and share repurchases. We are also concerned with the lack a catalyst to increase revenues once Lipitor loses patent exclusivity in 2011.

However, Pfizer should to look to do a number of significant deals in the pharma and biotech industry in 2009. The company has an enormous cash balance, and should be able to buy its way around the Lipitor patent cliff.

Our recommendation is Buy based on attractive valuation, high dividend, and strong financial position. We see $22 as fair-value.

Read the full analyst report on PFE

“PFE” Free Stock Analysis: Buy? Sell? Hold?
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