(new: prices after the stock market opened, Pfizer turned positive, further analyst opinions)
NEW YORK (dpa-AFX) – Pfizer investors quickly put up with a forecast cut on Monday. The US pharmaceutical company’s shares recently rose by 5.5 percent to $33.89, the same level as at the beginning of October, after coming under pressure in premarket trading.
Now is a good opportunity to adjust market expectations, analysts said. Expert David Risinger from the investment bank Leerink Partners emphasized that he was positively surprised by the reduction in net costs targeted for this year.
With the price jump at the beginning of the week, Pfizer’s shares were among the best values in the S&P 500. This gained a good one percent.
In contrast, shares of the vaccine manufacturer Biontech (BioNTech (ADRs)) and the pharmaceutical company Moderna suffered from the news. The papers of Biontech – Pfizer’s partner in the Comirnaty corona vaccine – lost four percent in New York, while those of its competitor Moderna lost five and a half percent.
Due to the collapse in Covid revenues, Pfizer cut its sales forecast for the current year to between $58 and $61 billion on Friday after US trading closed. Revenues of $67 to $70 billion were previously expected. The decline is solely due to corona drugs, it was said.
Pfizer also recorded a billion-dollar inventory write-down related to lower-than-expected demand for Covid drugs. For the Covid drug Paxlovid alone, the group lowered its sales expectations by seven billion dollars. Pfizer now expects sales of its corona vaccine Comirnaty to be two billion dollars less.
Jefferies expert Akash Tewari advises investors to get involved with Pfizer right now. His price target of $39 currently signals 15 percent potential compared to Friday’s close on Wall Street. Thanks to the savings, the earnings targets for 2024/25 are more than achievable. He also sees some attractive price drivers coming, so that the recently weak stocks are likely to outpace the market.
Biontech announced that it would examine the possible impact of the write-downs and other charges taken by Pfizer in connection with Comirnaty on the financial results of its own group. The Mainz company is expected to record the impact of Pfizer’s inventory write-downs in connection with the Covid vaccine amounting to up to 0.9 billion euros in the third quarter. This represents about half of the gross profit share from the agreement with Pfizer, it said. Any such write-downs will reduce the company’s revenue. Biontech wants to publish its third quarter figures on November 6th.
The share prices of the former high-flyers on the stock market reached record highs during the pandemic in 2021. But the more the pandemic came under control as vaccines became available, the quieter things became about the vaccine manufacturers – at least on the stock market. Biontech and Moderna have each lost around 80 percent compared to their records. At Pfizer, the discount since the record high is almost half./ajx/gl/ngu/la/jkr/he
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