Albert Bourla, the CEO of pharmaceutical company Pfizer (PFE), plans to meet with activist investor Starboard Value in coming days.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The Financial Times is reporting that Bourla and other senior executives of Pfizer will meet with Starboard next week. The meeting comes after Starboard Value has taken a $1 billion stake in Pfizer and is agitating for improvements at the drug maker, and to its share price.
According to media reports, Starboard believes that Pfizer has moved away from its disciplined cost structure and investments in new prescription drugs, and that has hurt the company’s finances and stock. Starboard is calling for change at the top of Pfizer and is reportedly trying to bring back former Pfizer CEO Ian Read and ex-finance chief Frank D’Amelio to the company.
Declining Sales of Covid-19 Medications
Pfizer’s stock has declined 7% in the past year and is down 21% over three years. The main problem at the company has been slowing sales of its Covid-19 vaccines and related medications. As sales of its Covid-19 products have fallen, Pfizer has undertaken a cost-cutting drive that aims to deliver at least $4 billion in savings by the end of this year.
The company is also focusing on cancer treatments after its $43 billion acquisition of pharmaceutical concern Seagen in 2023. At the end of July this year, Pfizer posted better-than-expected second-quarter financial results and raised its forward guidance. The positive results were attributed to the cost-cutting measures and strong sales of non-Covid medications.
Is PFE Stock a Buy?
Pfizer stock has a consensus Moderate Buy rating among 19 Wall Street analysts. This rating is based on seven Buy and 12 Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average PFE price target of $32.69 implies 12.03% upside from current levels.
