Pfizer cost update an incremental positive, says Morgan Stanley

Morgan Stanley views Pfizer’s announcement of its cost reduction program as an incremental positive for longer-term margins, though the firm sees the near-term the company’s outlook and progress of key product cycles as more relevant for the stock. The potential to increase cost savings and more quickly approach pre-pandemic margins has been part of the bull argument on Pfizer, but the impact from today’s update is modest relative to other areas of focus on the stock story at this point, the analyst tells investors in a research note. The firm keeps an Equal Weight rating on the shares with a $29 price target.