Summary
New CEO coming on board.
His experience lies in innovation.
We expect Pfizer to become more focused after the transition especially on acquisitions.
Remaining long.
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The temptation at present may be to sell or lighten up on Pfizer (PFE) shares. Currently, PFE trading at $44.27 a share gives us a sales multiple of 5.0 and a book multiple of 3.7. These numbers may be well outside Pfizer's 5-year averages but remain pretty close to what the industry is trading at present.
Furthermore, as we can see from the chart below, once PFE broke out of its trading range in the summer, the stock became overbought quite quickly as we can see from the RSI indicator. However, that did not stop shares powering forward. Yes, we are a nice bit stretched above the 50-day moving average but all we may get here is some consolidation to enable the moving averages to catch up so to speak.
