Pfizer Stock (NYSE:PFE)
Pfizer’s (NYSE:PFE) recent drop to a 52-week low was insufficient to cause Jefferies to declare a positive rating on the pharmaceutical giant. Instead, on Monday, the analyst Akash Tewari initiated Jefferies’ coverage with a Hold rating, citing a lack of clarity on the forecast as the rationale for the rating.
According to the research analyst, who recommended a price objective of $43 a share for the Pfizer stock, PFE “now has the biggest difference between what the firm has set out over the next decade and what the market is baking in.”
Pfizer (NYSE:PFE) Chief Executive Albert Bourla projected approximately $25 billion and approximately $20 billion in non-COVID revenue in 2030 from business development and new product rollouts within the next 18 months, respectively. This projection was made during the recent J.P. Morgan Healthcare Conference.
In addition, Bourla projected that non-COVID revenues would amount to around $52 billion in 2025. This number does not include income generated from business development initiatives.
Tewari worries about execution and estimates $10B risk-adjusted revenue for Pfizer (PFE) in 2030 from the new releases through H1 2024. Tewari argues that the company’s long-term ambitions are “ambitious,” He claims that this raises questions about its ability to carry them out.
The analyst doubts the effectiveness of Pfizer’s (NYSE:PFE) COVID franchise, which includes the oral antiviral medication Paxlovid and the vaccine Comirnaty.
Tewari has issued a projection for the company’s COVID revenue that is lower than what the mainstream is anticipating. He expects demand for Comirnaty to be underwhelming due to the downturn in government-led procurements and the transition to the commercial sector.
Pfizer stock has a meager price-to-earnings ratio; nevertheless, Jefferies believes that developing a new COVID version, combined with encouraging business development efforts, may be able to reverse the tide and provide upside for the company.
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