UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Pfizer on Increased Share Buyback Assumptions

In a report published Monday, Bank of America reiterated its Buy rating on Pfizer

, and slightly raised its price target from $29.00 to $30.00. Bank of America noted, “We are increasing our price objective (PO) to $30 (from $29) based on increased share buyback assumptions in 2013/2014 and the addition of revenue for palbociclib (CDK 4/6 inhibitor which recently started Phase III trials). We continue to like PFE due to its solid dividend yield (3.5%), pipeline optionality and our belief in management's willingness to make significant strategic decisions to enhance value. We are adding palbociclib (PD-0332991, CDK 4/6 inhibitor) to our model. We assume launch in 2016, reaching peak sales of $1bn four years after launch. PFE reported positive results from a Phase II trial of palbociclib (PD-0332991, CDK 4/6 inhibitor) at the San Antonio Breast Cancer Conference (SABCS) in Dec-12. In first-line ER +ve, HER2 –ve breast cancer patients, the median progression-free survival in the palbociclib + letrozole arm was 26.1 months vs. 7.5 months in the letrozole alone arm...PFE initiated Phase III trials in Feb-13 (per clinicaltrials.gov) and plans to discuss a potential accelerated approval with the FDA.” Pfizer closed on Friday at $27.39.