Pfizer Prospects Garner Mixed Sentiment From Analysts: 'Finally, The Pivot Investors Have Been Waiting For'

Pfizer Inc PFE reported first-quarter earnings Wednesday with adjusted EPS of 82 cents. That’s down 33% year-over-year, beating the consensus of 54 cents.

The New York-based company witnessed a significant decrease in Comirnaty and Paxlovid revenues globally and an unfavorable impact of foreign exchange of $107 million, or 1%. 

The U.S. drugmaker reported sales of $14.9 billion, down 20%, beating the consensus of $14.2 billion.

• Goldman Sachs maintains the Buy rating with a price target of $31.
• BMO Capital raises the price target from $33 to $36 and reiterates the Outperform rating
• Bank of America Securities maintains a Neutral rating with a price target of $35.

Goldman Sachs: Pfizer shares outperformed after the earnings and interprets the Paxlovid beat without a top-line revenue guidance raise as aligning with the management’s tone regarding the ‘cautious optimism’ near-term outlook. 

Takeaways include: Padcev impressed, Prevnar did not disappoint, and Vindaqel also delivered. 

In contrast, commercial execution with Nurtec and Oxbryta remains a work in progress. Goldman also highlights Abrysvo (RSV), where upcoming data (2-year) and potential label expansion are fundamental catalysts. 

BMO Capital: Pfizer’s earnings call was marked by renewed focus (oncology, RSV, hematology). This may finally be the pivot investors have been waiting for, “not because it eliminates challenges, but because it disarms them.”

BMO expects margin improvement, giving guidance that reflects well-managed expectations with room for upside on the top and bottom lines.

BofA Securities: The firm remains focused on Pfizer’s six new product launches (Nurtec/Vydura, Oxbryta, Abrysvo, Elrexfio, Velsipity, and Litfulo) and two label expansions (Padcev in 1L bladder cancer and Xtandi in nmCSPC with higher-risk BCR).

Currently, there’s evident growth stemming from the label expansions with Padcev, the BofA analyst writes. 

According to first-quarter discussions, it’s uncertain when other important products will experience a significant change in 2024. That’s mainly due to challenges related to reimbursement and access.

Price Action: PFE shares are up 2.15% at $27.77 at last check Thursday.

Now Read: Pfizer Sees Less Revenue From Covid-19 Treatments, Stock Faces Headwinds Ahead Of Q1 Earnings