Friday, Pfizer Inc (NYSE: PFE) slashed its full-year earnings and revenue guidance, citing decreasing demand for its COVID-19 products.
The company now expects 2023 sales of $58 billion-$61 billion, down from its previous guidance of $67 billion-$70 billion versus consensus of $66.0 billion.
BMO Capital Markets lowered the price target for Pfizer from $44 to $33 with an Outperform rating.
Analyst Evan David Seigerman writes that the massive $9 billion guidance cut raises questions about management's forecast and the evolving COVID-related business.
This guidance realignment was desperately needed but may not be enough for management to regain credibility.
BMO writes that there will likely be a small COVID-related business for Pfizer, but it will not be the driver of any growth.
Goldman Sachs keeps the price target of $54 and says that while the timing of the guidance update comes as a surprise, the first take on the content includes net positives.
The analyst says the guidance revision is COVID R&D skewed, but further details are awaited. Overshadowed by guidance is positive news with FDA approval of Velsipity with favorably differentiated label language.
Cantor Fitzgerald notes that it's a good time to take another look at Pfizer's stock. Earnings expectations have been reset.
New product launches should accelerate sales growth in Q4 FY23, and data readouts for danuglipron and mRNA flu could surprise the upside.
Price Action: PFE shares are up 3.74% at $33.31 on the last check Monday.