January 12, 2009 / 12:15 PM / 10 years ago

UPDATE 1-Goldman removes Pfizer from Americas Sell List

Jan 12 (Reuters) - Goldman Sachs removed Pfizer Inc (PFE.N) from its Americas Sell List, citing the underperformance of the stock relative to its peers and the potential for restructuring initiatives at the company.

“Pressure is mounting on management to do something big and soon. Almost regardless of what precisely this action is, we believe the stock would respond positively to a sign of positive, dramatic change at Pfizer,” analyst Jami Rubin said in a note.

More cost-cutting is likely but will not solve the company’s longer-term structural problems, Rubin added.

“Cost reductions of close to $5 billion are already embedded in our forecasts and assume further meaningful headcount reductions,” Rubin said.

Pfizer shares have shed 27 percent in the last 12 months, while the S&P 500 Index .SPX has dipped 37 percent, said the analyst, who maintained a price target of $19 on the stock.

Pfizer shares closed at $17.44 Friday on New York Stock Exchange. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Himani Sarkar)

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