In a report released yesterday, Tim Anderson from Bank of America Securities maintained a Hold rating on Pfizer (PFE – Research Report), with a price target of $29.00.
Tim Anderson’s rating is based on several factors, primarily revolving around Pfizer’s recent call discussing the Medicare Part D redesign changes under the Inflation Reduction Act. During the call, Pfizer reiterated previous statements about the expected negative impact on revenues, particularly in the first half of 2025, without providing new significant insights or detailed disclosures at the brand level. This lack of new information makes it challenging to precisely model the financial impact.
Additionally, Tim Anderson notes that while Pfizer’s current price-to-earnings ratio and dividend yield may provide a floor for the share price, there are concerns about the company’s long-term growth prospects due to patent expirations and competitive pressures. Despite the low risk of a dividend cut, the anticipated catalysts for 2025 appear limited, and upcoming updates on its oral GLP1 are not expected to significantly influence the stock. As a result, the Hold rating is maintained with a price objective of $29.
According to TipRanks, Anderson is a 4-star analyst with an average return of 8.7% and a 70.15% success rate. Anderson covers the Healthcare sector, focusing on stocks such as Gilead Sciences, Johnson & Johnson, and Amgen.
In another report released on March 27, Citi also maintained a Hold rating on the stock with a $27.00 price target.