Jeffries Price Target Increase Pushes Pfizer Through Key Resistance Level

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Pfizer Inc. PFE shares are trading sharply higher by $0.95 at $35.20 in Monday's session.. The catalyst for the rally may be a price target increase by Jefferies, who bumped its target from $42 to $45.00. The firm rates the issue as a Buy and has identified several ways that will propel the issue to levels not reached since March 2001. The upgrade from Jeffries instigated a higher opening (Friday's close of $34.25 vs Monday's open of $34.51) and after maintaining its lofty open, the rally continued. Pfizer, which had been struggling with a group of institutional sellers at $35 level since early February has finally busted through that critical level, reaching $35.26 so far in today's session. That marks the highest level for the issue since it peaked on June 22, 2004 at $35.18. Since making the high, its has found intraday support at the $35.00 and is now revisiting the highs for the session.