Street View: Growth drugs lift Pfizer outlook, but execution remains key
PFE•Pfizer beats Q2 expectations and adds cost cuts
Pfizer reported better-than-expected second-quarter results on Tuesday, driven by strong sales of blood thinner Eliquis and recently acquired drugs, and unveiled an additional $2.5 billion in cost-cutting measures.
Analysts focus on pipeline execution and growth drugs
- Median price target of 31 brokerages covering the stock is $28 - LSEG-compiled data.
- J.P. Morgan (neutral, PT: $28) says, "from here, we expect the PFE story to be centered on pipeline progression."
- Morningstar (fair value: $32) says migraine drug Nurtec and oncology drugs Lorbrena and Padcev were key growth drivers and, in its view, have significant room for further growth, with patent protection extending through at least 2033.
- RBC Capital Markets (sector perform, PT: $28) says PFE remains a "show me" story, with the investment case dependent on the company's ability to deliver on productivity initiatives and key pipeline milestones.
- Jefferies (buy, PT: ) says PFE is well positioned to market obesity drugs, supported by its extensive primary-care sales force and direct-to-consumer capabilities.
