Analyst Tim Anderson from Bank of America Securities maintained a Hold rating on Pfizer and keeping the price target at $28.00.
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Tim Anderson’s rating is based on a combination of factors that reflect both the current and future outlook for Pfizer. The recent agreement between the US and Pfizer on drug pricing, while initially surprising in its timing, aligns with expectations that the pharmaceutical industry would avoid significant financial burdens from such negotiations. This deal, which appears to have minimal financial impact on Pfizer, has been positively received by the market, as evidenced by a rise in Pfizer’s stock price.
However, despite this positive development, Pfizer faces substantial challenges due to upcoming patent expirations on several major drugs, which could impact its long-term growth prospects. While Pfizer’s current valuation is supported by its low price-to-earnings ratio and high dividend yield, these factors alone may not be sufficient to drive significant future growth. Therefore, the Hold rating reflects a cautious stance, acknowledging both the immediate benefits of the recent deal and the longer-term uncertainties the company faces.
In another report released yesterday, Bernstein also assigned a Hold rating to the stock with a $30.00 price target.