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Jefferies raises its price targets on big pharma names Pfizer (PFE +2.6%) ($33), Merck (MRK...

Jefferies raises its price targets on big pharma names Pfizer (PFE +2.6%) ($33), Merck (MRK +2.7%) ($48), Johnson & Johnson (JNJ +0.7%) ($85), Eli Lilly (LLY +1.4%) ($44), Bristol-Myers Squibb (BMY +0.5%) ($45), AbbVie (ABBV +1.2%) ($50), and Abbot Laboratories (ABT +1.1%) ($42). "We remain positive on pharmaceuticals," Jefferies says, "valuation is attractive for most stocks." 
Comments (6)
  • dacama1
    , contributor
    Comments (217) | Send Message
     
    Interesting target for LLY. Might it be 64?
    10 Apr 2013, 01:45 PM Reply Like
  • Mark Stanford
    , contributor
    Comments (51) | Send Message
     
    I bought 1400 shares of ABBV at the opening bell of the first day it traded for $34.70/share. It's up 24-25% since then, plus it pays 3.8% dividend. My wife works for ABBV as a director, and she urged me to buy at the opening bell. I thought, "sure honey". One of my more irrational trades, but one of the luckier.

     

    Though it did fit into my new portfolio strategy I implemented in Dec 2012 to move everything into divi payers/champions and high yield divi's. (This strategic move has REALLY paid off in the last 3.5 months.) Here is the rest of my portfolio (number is share count):
    FDRXX ** FIDELITY CASH RESERVES 442.56
    AIG AMERICAN INTL GROUP INC COM NEW 27
    C CITIGROUP INC COM NEW 36
    CLNY COLONY FINL INC COM 335
    COP CONOCOPHILLIPS 200
    INTC INTEL CORP 500
    MCD MCDONALDS CORP 200
    MSFT MICROSOFT CORP 375
    MTGE AMERICAN CAP MTG INVT CORP COM 300
    NCT NEWCASTLE INVT CORP 700
    NLY ANNALY CAPITAL MANAGEMENT INC COM 1,000.00
    NNN NATIONAL RETAIL PPTYS INC COM 200
    PGX POWERSHARES EXCH TRADED FD TR II PREFERRED PORTFOLIO ISIN #U 500
    PSEC PROSPECT CAP CORP 650
    RIG TRANSOCEAN LIMITED COM CHF15 14
    STX SEAGATE TECHNOLOGY PLC COM USD0.00001 200
    TICC TICC CAP CORP COM 550
    WM WASTE MANAGEMENT INC 300
    10 Apr 2013, 02:04 PM Reply Like
  • spybreaker
    , contributor
    Comments (235) | Send Message
     
    Abbvie (ABBV) has been great so far. I bought it at ~33 with a plan to sell BMY eventually because it BMY was looking overpriced to me. I finally sold BMY last friday. ABBV is one of my best performing high dividend paying stocks this year. The high yield makes me want to hold. It look attractively priced so I don't think your buy was irrational.
    10 Apr 2013, 02:15 PM Reply Like
  • slukas
    , contributor
    Comment (1) | Send Message
     
    Certainly hope her recommendation was not on the basis of insider information; sounds suspect!
    10 Apr 2013, 03:38 PM Reply Like
  • biochemist
    , contributor
    Comments (352) | Send Message
     
    slukas, depending on her role in the company, a director, not a member of the board but a common job title in middle management in pharma, is very unlikely to have insider information of a material nature.
    10 Apr 2013, 05:05 PM Reply Like
  • spybreaker
    , contributor
    Comments (235) | Send Message
     
    This might be a short term outlook?

     

    I sold BMY last friday. I felt it was overpriced with a high trailing PE 35 and forward PE of 22, high payout ratio of 117% and low growth forecast.... so what does Jeffries see in BMY? Most of the new drugs down the pipeline are slated for 2014 if I am not mistaken and they have challenges with patent cliff issues. Or are they just going with the big pharma trend of outperforming the market since the beginning of the year?
    10 Apr 2013, 02:11 PM Reply Like
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