J.P. Morgan analyst Chris Schott has maintained their neutral stance on PFE stock, giving a Hold rating on March 7.
Chris Schott’s rating is based on a combination of factors surrounding Pfizer’s current and future prospects. One key consideration is the potential advancement of danuglipron into Phase 3 trials. While there is optimism about this move, Schott remains cautious due to the high dropout rates observed in Phase 2 trials, which Pfizer attributes to trial design issues. The expectation is that improved trial designs in Phase 3 could enhance the drug’s profile, but significant uncertainties remain.
Additionally, Schott notes that Pfizer’s shares are currently undervalued, trading at a relatively low multiple of expected earnings. However, this is counterbalanced by concerns over modest revenue declines in the coming years. While there are promising assets in Pfizer’s pipeline, particularly in oncology, Schott believes that substantial progress on these fronts is necessary to alter the current investment narrative. As a result, the Hold rating reflects a balanced view of potential upsides and existing challenges.
In another report released on March 7, Berenberg Bank also maintained a Hold rating on the stock with a $28.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is neutral on the stock.