Pfizer's Diverse Portfolio And Strong Execution Earn Analyst Praise Despite Patent Concerns

On Tuesday, Pfizer Inc. PFE reported second-quarter adjusted EPS of $0.60, down 11% year over year, beating the consensus of $0.46.

The U.S. drugmaker reported sales of $13.28 billion, up 2% year-over-year (up 3% operationally), beating the consensus of $13.02 billion.

Truist Securities sees the strong demand growth as highly encouraging and, at current levels, Pfizer shares are very attractive given the company’s diverse portfolio that is gaining momentum, effective cost-cutting initiatives, and a commitment to maintaining or growing an attractive dividend.

The analyst maintains the Buy rating, with a price target of $36.

Goldman Sachs notes that Pfizer’s performance included noteworthy standouts (Vyndaqel, Nurtec) and evidence that integration of the Seagen acquisition is progressing well.

Goldman Sachs analyst writes, “We were struck by the raised COVID-19 guidance, as we interpret the decision as being underpinned by confidence. Gross margin gains provide reassurance relative to concerns earlier in the year, as gains from cost realignment initiatives are materializing.”

The analyst keeps the Buy rating and raises the price target from $31 to $34.

BMO Capital Markets writes Pfizer’s (Outperform, $36 target) second-quarter earnings highlight the direction of the business as it moves out of the shadow of COVID.

With COVID revenue stabilizing, base revenue expanding, and clinical development focused on accelerating danuglipron in any way possible, BMO Capital analyst writes that the business’s priorities are aligned with shareholders.

Cantor Fitzgerald notes that concerns about Pfizer’s patent cliff and downside risk to COVID-19 sales will be offset by Seagen, new product launches, and M&A expected to resume beyond 2025.

Also, along with the strong execution of its cost reduction programs, the updates could drive EPS to $3+ in 2025+ and the stock toward its price target of $45. Maintains the Overweight rating.

Price Action: PFE stock is down 1.85% at $30.81 at last check Wednesday.

Photo via Shutterstock

Read Next:

• One Year, Five Trial Failures: FibroGen Terminates Pancreatic Cancer Treatment Program.