TD Cowen Downgrades Pfizer's Rating Amid Pessimistic Outlook

TD Cowen's Steve Scala downgraded their rating on Pfizer (NYSE: PFE) from Buy to Hold on 2024/01/04. The analyst also announced a $32 price target.

According to Scala, Pfizer's stock seems to be surrounded by pessimism following a "very challenging 2023." The management's guidance has made it difficult for him to be highly confident in the stock, even at its current levels. As a result, TD Cowen is downgrading the stock until more information about the company's growth potential becomes available.

Interestingly, Scala also had positive news for Merck & Co Inc. On the same day, the analyst raised their price target on Merck by 8%, from $125 to $135, and upgraded the stock from Hold to Buy. This indicates a more optimistic outlook for Merck compared to Pfizer.

It is worth noting that none of the top-rated analysts currently rate Pfizer as a Strong Buy or Buy. According to the consensus among analysts, 100% of them see Pfizer as a Hold, with no recommendations for selling the stock.

The consensus forecast among analysts suggests that Pfizer's upcoming year will deliver earnings per share (EPS) of $2.2. If these analysts prove to be correct, Pfizer's next yearly EPS will show a 19% increase on a year-over-year basis.

Looking at Pfizer's performance, the stock price has seen a decline of 12.3% since its last quarterly report on 2023/10/01. On a year-over-year basis, the stock is down by a significant 42%. During this period, Pfizer has been trailing behind the S&P 500, which itself has experienced a decline of 21.7%.

Steve Scala, the TD Cowen analyst responsible for the rating change, is ranked in the top 21% of Wall Street analysts by WallStreetZen. With an average return of 12.1% and a 78.9% win rate, Scala specializes in the Healthcare sector.

Pfizer Inc., a New York-based company founded in 1849, is known for developing and manufacturing medicines and vaccines in various therapeutic areas. Their products range from cardiovascular metabolic and women's health medications under the Premarin family and Eliquis brands to biologics, small molecules, immunotherapies, and biosimilars under brands like Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi. Pfizer also produces sterile injectable and anti-infective medicines, as well as an oral COVID-19 treatment under brands such as Sulperazon, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid.

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