Jefferies maintains buy rating and $33 target on Pfizer stock

On Wednesday, Jefferies analysts reiterated a Buy rating for Pfizer stock (NYSE: NYSE:PFE) and maintained a price target of $33. Trading at $23.35, the pharmaceutical giant appears undervalued according to InvestingPro analysis. This decision follows the presentation of Phase 1 data at the American Society of Clinical Oncology (ASCO) meeting.

The data presented focused on Pfizer’s B6A MMAE ADC, known as sigvotatug vedotin (SV), used in combination with pembrolizumab (pembro) in first-line non-small cell lung cancer (NSCLC) patients without EGFR or ALK mutations. The findings indicated a potential synergy between SV’s MMAE payload and pembrolizumab, especially in patients with a PD-L1 tumor proportion score (TPS) of 50% or higher. With a market capitalization of $132.75 billion and a strong financial health score, Pfizer remains a prominent player in the pharmaceuticals industry.

Jefferies analysts highlighted that Pfizer’s Phase 3 trial in first-line NSCLC patients is targeting those with TPS of 50% or more, using a design similar to that of Trodelvy’s EVOKE-03 study. This approach may offer insights into the effectiveness of the combination therapy in this specific patient group.

The analysts’ reaffirmation of Pfizer’s stock rating and price target reflects their confidence in the company’s ongoing research and development efforts in oncology.

In other recent news, Pfizer has been actively engaged in multiple developments that have caught the attention of investors. Jefferies recently raised its price target for Pfizer to $33, maintaining a Buy rating, following Pfizer’s exclusive global licensing agreement with 3SBio for the compound SSGJ-707. This PD-1/VEGF inhibitor has shown promising Phase 2 data, which aligns with Pfizer’s strategic interests in enhancing its oncology portfolio. Meanwhile, Citi has reiterated a Neutral rating for Pfizer, with a price target of $25, highlighting the potential for combining SSGJ-707 with Pfizer’s antibody-drug conjugate platform for differentiation opportunities.

Guggenheim has maintained its Buy rating with a $23 target, noting that recent changes in COVID-19 vaccine guidelines are expected to have minimal impact on Pfizer’s vaccine business. The focus is shifting towards high-risk populations, and Pfizer’s antiviral treatment, Paxlovid, could benefit from this new dynamic. Bernstein analysts have kept a Market Perform rating and a $30 target, emphasizing Pfizer’s recent $6 billion licensing deal for SSGJ-707 and its implications for the competitive PD1/VEGF bispecific market.

The FDA has announced new trial requirements for COVID-19 boosters, primarily affecting healthy individuals under 65, which may influence Pfizer’s vaccine strategy. Despite these regulatory changes, Pfizer continues to focus on advancing its pipeline and business development strategy to strengthen its long-term growth prospects. These developments reflect Pfizer’s ongoing efforts to expand its portfolio and navigate the evolving pharmaceutical landscape.

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