Citigroup Releases Pfizer Core Product Trends; Explains Price Target

Citigroup has released its Pfizer, Inc. (NYSE: PFE) core product trends for the week ending 10/15/2010. Lipitor, Lyrica, Chantix and AriceptXR are among the drugs featured in the report.

“We arrive at our $17 target price for Pfizer based on a relative P/E compared to the US Drug peer group,” Citigroup writes. “Given that Pfizer's current growth and risk profile is very different from years past, we currently view this historical premium as generous and believe a meaningful discount to the drug industry P/E is more appropriate.”

Citigroup went on to say that it rates Pfizer shares High Risk given the “continued deterioration of its base business in the US, negative US cash flow position and modest uncertainty of the announced acquisition being successfully completed in time due to any reason.”

Pfizer closed Monday at $17.62.