Pfizer’s Growth Outlook: Hold Rating Amid Declining Revenue and Uncertain Prospects

Bank of America Securities analyst Tim Anderson reiterated a Hold rating on Pfizer yesterday and set a price target of $30.00.

Tim Anderson has given his Hold rating due to a combination of factors affecting Pfizer’s financial outlook. One of the primary reasons is the anticipated decline in revenue and earnings per share (EPS) estimates for the upcoming years, particularly driven by reduced COVID product sales in the US. The adjustments in revenue and EPS estimates for 2025 and beyond reflect a cautious stance on Pfizer’s growth prospects.
Additionally, while Pfizer’s current price-to-earnings ratio and dividend yield provide some support for the stock price, the long-term growth outlook is clouded by uncertainties. These include potential risks from patent expirations and competitive pressures on its major franchises. As a result, despite the company’s efforts in expanding its pipeline and exploring new opportunities, the overall growth trajectory remains below average, justifying the Hold rating.

In another report released on October 21, Bernstein also assigned a Hold rating to the stock with a $30.00 price target.