Following Pfizer's Q2 Results, Citi Says Investors Remain Focused On Potential Breakup

Despite a second quarter earnings beat from Pfizer Inc. (NYSE: PFE), Citi said investors are focusing on the potential breakup of the company by the year-end. But, Citi still views the breakup as "unlikely."

Citi, which has a Neutral rating and $37 price target on the stock, attributed Pfizer's earnings beat to lower than expected R&D and tax rate for the quarter.

"The reaffirmation of full year guidance suggests this is a phasing rather than fundamental issue," analyst Andrew Baum wrote in a note.

Related Link: It's Normal For Pfizer To Trade Down After Beating Estimates

As such, Baum continue to prefer Buy-rated Bristol-Myers Squibb Co (NYSE: BMY) and Eli Lilly and Co (NYSE: LLY) in the US.

Among the EU majors, the analyst prefer Buy-rated AstraZeneca plc (ADR) (NYSE: AZN), GlaxoSmithKline plc (ADR) (NYSE: GSK), Roche Holding Ltd. (ADR) (OTC: RHHBY) and Novo Nordisk A/S (ADR) (NYSE: NVO).

At time of writing, shares of Pfizer fell 2.17 percent to $36.50.

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