In a report released on March 29, Akash Tewari from Jefferies maintained a Buy rating on Pfizer (PFE – Research Report), with a price target of $34.00.
Akash Tewari’s rating is based on Pfizer’s strategic management of anticipated revenue impacts due to the Part D Redesign. Despite an expected net negative impact of approximately $1 billion to 2025 revenues, Pfizer’s management has outlined a plan to mitigate this through volume and patient affordability benefits expected in the latter half of the year. The company anticipates that while the initial half of the year will see the most significant negative impact, the second half will benefit from increased patient uptake and compliance, particularly for lower-priced drugs.
Furthermore, Pfizer has identified opportunities to offset some of the revenue losses through strategic adjustments to their pricing and coverage strategies. The company’s proactive approach in addressing the redesign changes, including managing the timing of rebates and understanding the dynamics of drug-specific impacts, showcases their ability to navigate regulatory shifts effectively. This strategic foresight and adaptability are key reasons for the Buy rating, as they suggest Pfizer is well-positioned to manage the challenges and capitalize on the opportunities presented by the Part D Redesign.
In another report released today, DBS also maintained a Buy rating on the stock with a $30.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is neutral on the stock.