Shares of pharmaceutical and biotechnology companies Pfizer (NYSE:PFE) and GSK (NYSE:GSK) declined on Wednesday, June 26. PFE stock declined about 2%, while GSK stock fell 3.6%. This drop followed a recommendation from the CDC’s advisory committee on respiratory syncytial virus (RSV) vaccines. The guidance targeted a smaller market than anticipated, which disappointed investors.
The committee recommends RSV shots for adults aged 75 and older. Meanwhile, adults aged 60-74 were advised to receive the vaccine only if they faced higher risks due to existing medical conditions. Investors were disappointed as they anticipated broader coverage, which would have expanded the vaccine market.
Last year, the CDC’s advisory committee supported the use of Pfizer’s Abrysvo and GSK’s Arexvy vaccines in people aged 60 years and older. Both vaccines were approved by the U.S. Food and Drug Administration.
Analysts Weigh In
Goldman Sachs analysts Chris Shibutani and Rajan Sharma believe that the targeted recommendations for the 60-74 age group limit the market size.
Nonetheless, Shibutani is bullish about Pfizer stock. He expects PFE to benefit from higher vaccine penetration within the recommended population. Shibutani reiterated a Buy rating on PFE stock and maintained the price target of $31 on June 26.
As for GSK stock, Sharma remained sidelined and reiterated a Hold.
Is PFE a Good Stock to Buy?
Wall Street is cautiously optimistic about PFE stock. It has seven Buys and eight Hold recommendations for a Moderate Buy consensus rating. PFE stock is down about 20.5% in one year. The analysts’ average PFE stock price target is $33.5, implying 22.17% upside potential from current levels.
Is GSK a Buy Right Now?
GSK stock is up about 13% in one year. Wall Street analysts remain sidelined on GSK stock. With two Buys, two Holds, and one Sell recommendations, GSK stock has a Hold consensus rating.
The analysts’ average GSK stock price target is $48.5, implying 24.77% upside potential from current levels.
