Pfizer Sparks Analyst Cheer With 2025 Guidance: Retail Maintains Extremely Bullish Stance
By Stocktwits Inc | First Published Dec 18, 2024, 11:22 PM ISTSome analysts are optimistic about Pfizer’s potential for growth, especially considering its focus on oncology and recent strategic acquisitions.
Shares of Pfizer Inc. were flat on Wednesday morning amid volatile trading, following the company’s recent guidance announcement for 2025, which sparked positive reactions from analysts.
The pharma giant on Tuesday confirmed that it would meet its goal of cutting $4 billion in costs by the end of 2024, with an additional $500 million in savings expected in 2025.
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Pfizer also provided a revenue outlook of $61 billion to $64 billion for 2024 and 2025, with adjusted earnings per share (EPS) anticipated to rise next year, aligning with Wall Street’s expectations.
Analysts have shown a mixed yet generally positive outlook on Pfizer’s prospects.
BMO Capital on Wednesday reiterated an ‘Outperform’ rating with a price target of $36, according to The Fly, noting that Pfizer’s 2025 guidance largely met its expectations, positioning the company for earnings expansion.
The analyst is optimistic about Pfizer’s potential for growth, especially considering the company’s focus on oncology and its strategic acquisitions, such as the $43 billion purchase of Seagen last year.
BMO views Pfizer’s revenue forecast as conservative, leaving room for potential upside throughout the year.
Wells Fargo raised its price target on the stock to $28 from $27, maintaining an ‘Equal Weight’ rating.
The brokerage highlighted better-than-expected EPS guidance driven by cost management and an improved COVID-19 outlook.
On the other hand, Truist analyst Robyn Karnauskas lowered the price target on Pfizer to $32 from $36, citing competitive pressures and the impact of the Inflation Reduction Act across several of Pfizer’s key products and its vaccine portfolio.
Still, the brokerage retained a ‘Buy’ rating, saying it expects strong execution in new launches and growing oncology presence to "right the ship and return to growth".
Retail sentiment on Stocktwits has remained ‘extremely bullish’ following the announcement, with message volume indicating strong investor interest and confidence in Pfizer’s future.
Optimism has also been recently driven by Pfizer’s solid quarterly performance, including a 31% year-over-year sales increase to $17.7 billion in its most recent earnings report, which exceeded analysts’ expectations.
Despite a solid recovery in sales and a more diversified portfolio, Pfizer’s stock has dropped over 8% so far this year, underperforming the broader market, and is currently trading at less than half of its December 2021 peak.
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