J.P. Morgan analyst Chris Schott has maintained their neutral stance on PFE stock, giving a Hold rating on November 6.
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Chris Schott has given his Hold rating due to a combination of factors surrounding Pfizer’s recent acquisition activities and market positioning. The decision to acquire Metsera for over $10 billion, despite the increased cost from the initial bid, is seen as a strategic move to expand Pfizer’s pipeline and strengthen its presence in the obesity market. Metsera’s assets, particularly the MET-097i with its potential for once-monthly dosing, offer a competitive edge but face challenges in terms of time-to-market and payer coverage compared to established players like Novo Nordisk and Eli Lilly.
While the acquisition could potentially open up a multi-billion dollar opportunity for Pfizer, the financial impact is expected to be dilutive through 2030. This long-term financial outlook, coupled with the competitive landscape, contributes to the Hold rating. Schott’s assessment reflects a cautious optimism, acknowledging the potential benefits of the acquisition while also considering the risks and uncertainties involved in Pfizer’s strategic expansion efforts.
In another report released on November 6, Bernstein also maintained a Hold rating on the stock with a $30.00 price target.