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Guggenheim sets Pfizer stock with buy rating, $36 target

EditorAhmed Abdulazez Abdulkadir
Published 02/23/2024, 05:04 AM
© Reuters.

On Friday, Guggenheim initiated coverage on Pfizer Inc. (NYSE: NYSE:PFE) with a Buy rating, setting a price target of $36.00. The move comes after a period of significant underperformance for Pfizer shares, which have dropped more than 50% since mid-December 2021. This decline stands in contrast to the S&P 500's approximately 8% rise and the DRG index's roughly 25% increase in the same timeframe.

The analyst from Guggenheim noted that investor expectations for Pfizer's COVID-19 related assets, including the vaccine Comirnaty and the oral antiviral treatment Paxlovid, have now been adjusted to more realistic levels. Despite challenges facing several of Pfizer's major revenue streams, there is potential for near-term estimate increases. This optimism is based on the successful commercialization of upcoming opportunities, such as Padcev for first-line bladder cancer treatment and Abrysvo for RSV prophylactic vaccination.

Guggenheim's analysis also highlights that the low investor expectations currently set for Pfizer could lead to positive shifts in sentiment should the company achieve clinical success with its promising pipeline assets. These include treatments like vepdegestrant, VLA15, and ponsegromab. The firm suggests that these developments, coupled with Pfizer's current dividend yield of approximately 6%, provide a stable foundation for the stock as management continues to execute its strategic plans.

The analyst's comments underscore the potential for Pfizer to rebound from its recent underperformance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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