Pfizer’s Strategic Opportunities and Market Risks: A Hold Rating Amidst Uncertainties

Analyst Asad Haider of Goldman Sachs maintained a Hold rating on Pfizer (PFE – Research Report), retaining the price target of $27.00.

Asad Haider has given his Hold rating due to a combination of factors surrounding Pfizer’s current business environment and strategic direction. The company’s management has expressed optimism about upcoming earnings and the potential benefits of recent strategic deals, particularly in the area of PD1-VEGF bispecifics and ADC portfolio combinations. However, there are uncertainties in the broader policy environment, especially concerning drug pricing, which remains a complex issue with ongoing discussions with the administration.
Additionally, while Pfizer is actively looking to engage in smaller M&A deals and has a clear focus on internal medicine, the evolving pricing dynamics in the cardiometabolic and obesity sectors pose challenges. The company’s commitment to maintaining its dividend as a capital allocation priority also plays a role in the Hold rating. These factors combined suggest a cautious approach, balancing the company’s strategic opportunities with the existing risks in the market.

In another report released yesterday, Cantor Fitzgerald also reiterated a Hold rating on the stock with a $24.00 price target.