WSJ report of probe to have limited impact on Pfizer, says Citi

Citi analyst Geoff Meacham keeps a Neutral rating on Pfizer (PFE) with a $27 price target after the Wall Street Journal reported that U.S. prosecutors are investigating claims the company delayed announcing the success of its COVID-19 vaccine until after the 2020 election. The investigation centers around allegations previously made by President Trump, which have been widely disputed, the analyst tells investors in a research note. Additionally, the scientist in question denies the claims, adds the firm. Citi says that while the news may initially raise concerns, the impact of the investigation will be negligible on Pfizer’s long-term prospects. However, the firm believes the looming headwinds of Inflation Reduction Act negotiations and loss of exclusivity on key drugs are expected to keep Pfizer shares range-bound in the near term.