2024-06-06 09:30:00 ET
Summary
- I had a 'Hold/Neutral' stance on Pfizer in my last update, but the stock has performed worse than my expectations; lagging the S&P 500 by 8.46%. Yet, I maintain my stance.
- I've been skeptical of Pfizer's expensive acquisition of Seagen. I believe the short-term performance incentives of the CEO are not well-aligned to value creation.
- Pfizer's business has seen stagnant sales over the last few years besides the one-off of COVID vaccines. The oncology drugs pipeline shows us that the key catalysts are in 2025-2026.
- Hence, I believe it is too early for a turnaround case to be made, especially since there is no compelling valuation discount for buyers.
Performance Assessment
In my last article on Pfizer ( PFE ) (PFE:CA), I had issued a 'Hold/Neutral' rating on the stock, which means I expected performance to be in-line with the S&P 500 ( SPY ) ( SPX )....
Read the full article on Seeking Alpha
For further details see:
Pfizer: Too Early For A Turnaround