Goldman Sachs Reiterates Buy Rating on Pfizer (PFE)

Goldman Sachs analyst Chris Shibutani reiterated a Buy rating and $33.00 price target on Pfizer (NYSE: PFE).

The analyst comments "Ahead of PFE's 2025 Guidance call (Tuesday, December 17) we outline our expectations for the guide and commentary on the upcoming year. Overall, we anticipate that PFE management will guide to earnings (EPS) in the mid-to-high $2 range with core business growth offset by the $0.30 in favorable, but non-recurring items during 2024. Our current forecasts call for 2025 revenues of $64.9bn and EPS of $3.13, which compares to consensus (Visible Alpha Consensus Data) estimates of $63.4bn and $2.91, respectively. On the top line, we are ahead of the Street on Paxlovid (GSe $4.3bn vs. consensus $3.7bn), though slightly more conservative on Vyndaqel (GSe $5.9bn vs. consensus $6.2bn). On the bottom line, drivers of our current upside relative to consensus include lower SI&A and R&D spend (which puts as further ahead on operating margins at GSe 36.1% vs. consensus 33.1%). Based on PFE management's call-outs of several one-time items that lent $0.30 of EPS upside to anticipated FY24 EPS, we do see some downside risk to our forecasts in the context of details that we look for management to provide during the guidance discussion. We highlight dynamics across key topics and frame potential points of discussion with potential read-across beyond PFE specifically, noting that they are the only large cap pharma company in our coverage that we expect to opine on 2025 ahead of the new year."

For an analyst ratings summary and ratings history on Pfizer click here. For more ratings news on Pfizer click here.

Shares of Pfizer closed at $25.58 yesterday.

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