Market Update (NYSE:PFE): Pfizer, Allergan scrap $160 billion deal after U.S. tax rule change

[Reuters] – Pfizer said the decision was driven by new U.S. Treasury rules aimed at such deals, called inversions. The merger would have allowed New York-based Pfizer to cut its tax bill by an estimated $1 billion annually by domiciling in Ireland, where tax rates are lower. While the new Treasury rules did not name Pfizer and Allergan, one of the provisions targeted a specific feature of their merger – Allergan’s history as a major acquirer of other companies. Read more on this. Pfizer Inc. (PFE) , currently valued at $201.73B, opened at $31.54. Looking at the equity, the company’s one day range is $31.53 to $32.63 with a one year range of $28.25 to $36.46. PFE shares are currently priced at 13.69x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s -2.39x forward p/e ratio. And for income investors, the company pays shareholders $1.20 per share annually in dividends, yielding 3.99%. Consensus earnings for the current quarter by the 16 sell-side analysts covering the stock is an estimate of $0.54 per share, which would be $0.03 better than the year-ago quarter and a $0.03 sequential decrease. The full-year EPS estimate is $2.29 which would be a $0.09 better than last year’s full-year earnings. The quarterly earnings estimate is predicated on a consensus revenue forecast of $11.90 Billion. If reported, that would be a 9.58% increase over the year-ago quarter. In terms of ratings, Sun Trust Rbsn Humphrey upgraded PFE from Reduce to Neutral (Nov 25, 2015). Previously, Morgan Stanley upgraded PFE from Equal-Weight to Overweight. Investors should keep in mind is that the average price target is $38.81, which is 23.05% above where the stock opened this morning. See more in (NYSE:PFE) Similar Articles: Stock Update (NYSE:PFE): U.S. Treasury rules put Pfizer-Allergan deal in question Stock Update: Pfizer Inc (NYSE:PFE) – Pfizer, Allergan get request for additional information from FTC Market Update: Pfizer Inc (NYSE:PFE) – Pfizer Invites Public to View and Listen to Webcast of May 3 Conference Call with Analysts