Goldman Sachs analyst Asad Haider has maintained their neutral stance on PFE stock, giving a Hold rating yesterday.
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Asad Haider has given his Hold rating due to a combination of factors influencing Pfizer’s current financial standing. The company’s first-quarter results showed a positive earnings per share (EPS) driven by effective cost-cutting measures, including reduced costs of goods sold, research and development, and selling, informational, and administrative expenses. However, the revenue performance was mixed, with some products exceeding expectations while others fell short.
Despite the encouraging cost-efficiency efforts, Haider believes that the key to a significant stock re-rating lies in revenue growth rather than just cost reductions. The management’s commitment to maintaining dividends, reducing debt, and reinvesting in the business is noted, but the focus remains on the need for revenue improvement. Additionally, Pfizer’s strategy to expand its cardiometabolic pipeline, particularly in obesity, through partnerships or acquisitions, is highlighted as a critical area of interest. Given these dynamics, Haider expects the stock to remain within a certain range, justifying the Hold rating.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a $24.00 price target.