Pfizer's on the rebound

It looks like Pfizer is once again on the road to success.

Pfizer (NYSE: PFE) is the world's largest research-based pharmaceutical company.

Analysts say that despite approximately flat 2008 revenue, margins should improve slightly, aided by PFE's restructuring/efficiency improvements designed to net $2 billion in savings by the end of 2008.

Analysts also like the growth forecasts for drugs Celebrex and Geodon, and also see more substantial revenue contributions from Lyrica, Sutent, and Chantix. Meanwhile, Lipitor, PFE's largest selling drug, has patent protection through 2010.

Analysts also like Pfizer's blue-chip customer list, which includes: McKesson (NYSE: MCK), Cardinal Health (NYSE: CAH) and AmerisourceBergen (NYSE: ABC). The Reuters F2008/F2009 EPS consensus estimates for PFE are $2.39/$2.54.

The risks? Analysts have an eye on Pfizer's pipeline development, an important component, given upcoming expiration losses, as well the company's roll-out timetable.

The First Call mean rating for PFE is: Hold. [24 firms.] Mean 2008 target: $28.00. [high: $33, low: $35.]

Stock Analysis: Pfizer is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 3 years should be rewarded from PFE's shares. Sell/Stop Loss if you were to purchase shares in this company: $13.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.