Pfizer (PFE) Higher After Much-Needed Merger Applause and Upgrade

Shares of Pfizer Inc. (NYSE: PFE) are ~3% higher today after getting some much-needed applause for its mega-merger with Wyeth (NYSE: WYE). Today, Credit Suisse upgraded Pfizer from Neutral to Outperform following the 16% slide in the stock since the deal was announced last week.

The Credit Suisse analyst cited the value creation opportunities and said it provides growth at a reasonable price. The analyst sees the deal boosting Pfizer's EPS by 30%-45% in 2012-2015.

The originally announced merger price was $68 billion, but it has since fallen due to the stock component of the deal. Under the terms of the deal, Wyeth shareholders will receive $33 in cash and 0.985 of a share of Pfizer common stock.

With the merger, Pfizer cut its dividend in half to a quarterly rate of $0.16 per share. Many investors had bought Pfizer for its hefty and "safe" dividend. When it was cut they went running.