Pfizer shares jump on analyst note
'Would be surprising' if drugmaker doesn't raise dividend, Credit Suisse analyst says.
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NEW YORK (Reuters) -- Pfizer Inc. shares rose more than 5%, outpacing its pharmaceutical rivals, after an analyst note suggested the world's largest drugmaker would likely increase its dividend payment after it completes the acquisition of smaller rival Wyeth.
Credit Suisse analyst Catherine Arnold, after a meeting with Pfizer management, said in a research note "expectations for future cash flow suggest to us that it would be surprising if Pfizer didn't raise the dividend in the future," post Wyeth deal closure and early integration.
Arnold, who has an "outperform" rating on Pfizer (PFE, Fortune 500) shares, also said the company may be able to finance the Wyeth (WYE, Fortune 500) deal at lower than expected interest rate.
Most of the major drugmakers saw shares rise Tuesday, with the American Stock Exchange Pharmaceutical Index up 2%.
Caris & Co. analyst David Moskowitz said investors are realizing any comprehensive health care reform that could bring price controls and hurt drug company stocks is not imminent.
"They're talking about implementing healthcare reform that could take as long as 2013," Moskowitz said.
"There are other priorities. It's a complex system and there's plenty of time for lobbyists to get in" to try to influence thinking, he added.
Pfizer shares closed up 78 cents, or 5.5%, at $14.93 on the New York Stock Exchange after rising as high as $15.21 earlier in the day. 
