Pharmaceutical company Pfizer’s (NYSE:$PFE) stock went up by 0.46% by market close on Wednesday, August 2. The rise was mainly due to BMO (TSE:$BMO) Capital Markets upgrading the stock from “Market Perform” to “Perform”. BMO also set Pfizer’s price target to $37.

BMO analyst Alex Arfaei explained the upgrade, saying that Pfizer has a number of opportunities for growth in the future — half of its planned products could be approved for the market by 2020. As well, Arfaei added, Pfizer does not expect any significant losses from 2020 to 2025. As a result, Pfizer could see a roughly 2 to 3% revenue growth in the next few years. Arfaei is expecting good news about Pfizer’s oncology pipeline that may help to change investors’ somewhat negative outlook on the pharmaceutical company.

With the success of Ibrance, a drug developed to treat breast cancer, and Xeljanz, a drug used to developed to treat rheumatoid arthritis, Pfizer has a pretty enticing risk/reward profile. The stock is low risk, too, Arfaei noted, mainly due to low pipeline expectations, a dividend that yields at about 4%, and a large number of share buybacks.

As such, it may be time for investors to start looking into Pfizer if they are interested in investing in pharmaceutical companies or in the healthcare market.

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