Despite a second quarter earnings beat from Pfizer Inc. 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.
As such, Baum continue to prefer Buy-rated Bristol-Myers Squibb Co BMY and Eli Lilly and Co LLY in the US.
Among the EU majors, the analyst prefer Buy-rated AstraZeneca plc (ADR) AZN, GlaxoSmithKline plc (ADR) GSK, Roche Holding Ltd. (ADR) RHHBY and Novo Nordisk A/S (ADR) NVO.
At time of writing, shares of Pfizer fell 2.17 percent to $36.50.
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