Morgan Stanley analyst Terence Flynn maintained a Hold rating on Pfizer yesterday and set a price target of $33.00.
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Terence Flynn has given his Hold rating due to a combination of factors related to Pfizer’s recent strategic moves and its current market position. The acquisition of Metsera is seen as a strategic step to bolster Pfizer’s pipeline, particularly in the obesity and cardiometabolic sectors, which is crucial given the company’s exposure to loss of exclusivity (LOE) on some of its products. This acquisition is expected to enhance Pfizer’s competitive stance in the obesity market, although it is anticipated to pose more of a competitive risk to Amgen than to Eli Lilly, given the development timelines.
Despite these positive strategic moves, Flynn’s Hold rating reflects a cautious outlook, considering the regulatory and shareholder approvals needed to finalize the Metsera acquisition, which is expected to close in the fourth quarter of 2025. Additionally, while the acquisition adds depth to Pfizer’s pipeline, the full realization of its potential benefits is contingent upon successful clinical trials and regulatory approvals, which introduces a level of uncertainty. Thus, while the acquisition positions Pfizer to compete with established players in the obesity market, the Hold rating suggests a wait-and-see approach as these developments unfold.
In another report released yesterday, J.P. Morgan also maintained a Hold rating on the stock with a $30.00 price target.