On Wednesday, Truist Securities adjusted its outlook on shares of Pfizer Inc. (NYSE:PFE), reducing the pharmaceutical giant's price target to $32.00 from the previous $36.00. Despite the cut, the firm maintained a Buy rating on the stock. The revision reflects Pfizer's anticipation of modest topline revenue growth, projected at up to approximately 5% operationally.
Moreover, the company forecasts better adjusted diluted earnings per share (EPS) growth ranging from 10 to 18% operationally. According to InvestingPro data, Pfizer currently trades at a P/E ratio of 35.01, with analyst targets ranging from $25 to $45. The stock appears undervalued based on InvestingPro's Fair Value analysis.
The reduction in the price target is attributed to several factors impacting Pfizer's business. Truist Securities highlighted the 2025 topline headwinds which are expected to be mitigated by the company's ongoing cost-cutting measures and successful execution of recent product launches.
The pressures arising from the competitive landscape and the implications of the Inflation Reduction Act (IRA) on Pfizer's portfolio were taken into account, specifically mentioning products such as Vyndaqel, Xeljanz, Eliquis, and Pfizer's vaccine offerings.
Despite these challenges, InvestingPro data shows Pfizer maintains strong fundamentals with a GOOD overall financial health score and an impressive 54-year track record of consistent dividend payments, currently yielding 6.51%.
Truist Securities expressed a positive long-term view on Pfizer. The firm's stance is supported by the belief that Pfizer's continued focus on launch execution and an expanding oncology presence will steer the company back towards growth. The analyst from Truist Securities conveyed confidence in Pfizer's strategic direction, suggesting that the company's efforts would ultimately "right the ship."
Pfizer has not publicly responded to the updated price target and maintained Buy rating by Truist Securities. Investors and market watchers will likely keep an eye on the company's performance, particularly in relation to the factors outlined by the securities firm. The company's ability to navigate the competitive pressures and capitalize on its newer launches will be crucial in achieving the projected revenue and EPS growth.
In other recent news, Pfizer Inc. has maintained its Market Perform rating with a $32 target, according to recent financial guidance for the fiscal year 2025. This aligns with expectations and slightly surpasses the consensus.
In addition, Pfizer's earnings for the year 2025 are projected to align with current Wall Street projections, with adjusted earnings targeted between $2.80 and $3 per share. This is in line with the $2.88 average estimate projected by analysts. Pfizer also anticipates its revenue for 2025 to be between $61 billion and $64 billion, which is close to the $63.26 billion predicted by analysts.
Goldman Sachs reaffirmed its Buy rating for Pfizer, projecting revenues of $64.9 billion and earnings per share of $3.13 for 2025. Pfizer has also increased its quarterly cash dividend to $0.43 per share for the first quarter of 2025.
In collaboration with Alliance Foundation Trials, Pfizer reported significant improvement in progression-free survival for patients with HR+, HER2+ metastatic breast cancer due to the addition of IBRANCE to the standard first-line maintenance therapy.
Guggenheim adjusted its financial outlook for Pfizer, reducing the price target to $33.00 but maintained a Buy rating, while Leerink Partners reduced its price target from $31.00 to $28.00, keeping a Market Perform rating. These are the recent developments in the company.
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