Analyst Tim Anderson from Bank of America Securities maintained a Hold rating on Pfizer (PFE – Research Report) and keeping the price target at $29.00.
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Tim Anderson’s rating is based on several factors including Pfizer’s recent financial performance and strategic outlook. The company’s quarterly results showed a solid revenue performance, particularly due to strong sales of COVID-related products and Eliquis. However, these positives were offset by declines in other areas, such as the Abrysvo vaccine, due to reduced vaccination rates in the U.S. Furthermore, Pfizer’s long-term growth appears uncertain due to looming patent expirations and increased competition, which contributes to a cautious outlook.
Additionally, while Pfizer’s current price-to-earnings ratio and dividend yield provide some support for its stock price, the company’s overall growth prospects remain below average compared to its peers. The lack of significant new developments in its product pipeline, aside from the anticipated danuglipron readout, further underscores the Hold rating. The potential for mergers and acquisitions in the obesity sector was noted but not confirmed, adding an element of uncertainty to the company’s future earnings trajectory.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a $29.00 price target.