Bank of America Securities: Lowered Pfizer (NYSE:PFE) price target to $50 with neutral rating

Bank of America Securities released a research report saying that Pfizer’s (NYSE:PFE) guidance for this year’s results indicates that the company expects pandemic-related revenue to decline by more than 60%, resulting in total revenue falling about 30% from the middle of the guidance. The bank said that while it was not surprised by the slowdown in demand, the magnitude of the decline and profit margins affected EPS guidance. Non-COVID-related revenues were also weaker, partially offset by poor performance on the Ibrance and Eliquis franchises. The bank believes investors have been focusing on non-COVID-related businesses given the uncertainty surrounding growth prospects in the post-pandemic period. The report mentioned that Pfizer highlighted several upcoming products that may improve investor sentiment. However, the bank believes they are unlikely to ease growth concerns. The bank continues to be cautious about the group’s long-term growth prospects, with revenue expected to grow at a CAGR of just 3% from 2022 to 2025. The bank reiterated its neutral rating and lowered its price target to $50 from $52.

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