Pfizer's 2030 Vision Bolstered By Seagen Deal, Analyst Cuts Price Target Amid Conservative 2024 Forecast
Portfolio Pulse from Nabaparna Bhattacharya
Truist Securities analyst Robyn Karnauskas has reiterated a Buy rating on Pfizer (PFE) but lowered the price target from $42 to $36 due to conservative 2024 guidance, particularly a lower $8 billion COVID-19 product forecast. The analyst is optimistic about long-term growth from the Seagen (SGEN) acquisition, which aligns with Pfizer's 2030 vision. Pfizer's FY2024 revenue guidance is set between $58.5 billion and $61.5 billion, including $8 billion from COVID-19 products and $3.1 billion from Seagen. The analyst has adjusted revenue and EPS forecasts for 2023-2025 and notes that combo vaccines could boost long-term COVID-19-related revenue. Pfizer's shares dropped by 1.86% to $26.17.

December 14, 2023 | 6:34 pm
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POSITIVE IMPACT
Seagen's acquisition by Pfizer is highlighted as a positive move for Pfizer's long-term growth, particularly in oncology, aligning with its 2030 vision.
The acquisition of Seagen is portrayed positively, suggesting that it will contribute significantly to Pfizer's future growth. This could be seen as a positive signal for Seagen's value and prospects within Pfizer.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Pfizer's price target has been lowered by Truist Securities due to conservative 2024 guidance, but the Buy rating is maintained. The Seagen acquisition is expected to contribute to long-term growth.
The lowered price target suggests a negative short-term impact on Pfizer's stock price, as the market may react to the conservative forecast. However, the maintained Buy rating indicates underlying confidence in the company's long-term prospects.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90