Asahi shares mark weekly slide after cyberattack halts production
Investing.com - BMO Capital has reiterated an Outperform rating and $30.00 price target on Pfizer (NYSE:PFE), currently trading at $27.21 with a P/E ratio of 14.4 and an attractive 6.75% dividend yield. According to InvestingPro analysis, the stock appears slightly undervalued, supporting BMO’s positive outlook on this agreement, which they describe as a "meaningful win" for both Pfizer and patients.
The deal specifically involves discounts for Medicaid programs rather than Medicare, according to BMO Capital’s analysis following discussions with Pfizer CFO Dave Denton and investor relations representatives.
BMO Capital notes that the arrangement effectively removes pharmacy benefit manager (PBM) middlemen, allowing existing discounts to flow directly to patients instead of being captured by intermediaries.
The agreement could potentially lead to discussions about higher pharmaceutical prices in European and other international markets, which was one objective of the Most Favored Nation (MFN) pricing policy previously proposed.
BMO Capital observes that while this deal provides Pfizer with protection from broader MFN policies or tariffs, other pharmaceutical manufacturers will need to negotiate their own separate agreements to secure similar benefits. For deeper insights into Pfizer’s market position and comprehensive analysis, access the full Pro Research Report available exclusively on InvestingPro, which covers this and 1,400+ other top US stocks.
In other recent news, AxoGen, Inc. received a reaffirmed Buy rating from Canaccord Genuity, maintaining a price target of $24. This comes as the company faces potential impacts from a U.S. government shutdown, which has resulted in the furlough of a significant portion of Health and Human Services employees. Meanwhile, Pfizer has been active in the pharmaceutical pricing arena, having reached an agreement with the Trump administration on drug pricing in the United States. TD Cowen reiterated a Hold rating with a $30 price target for Pfizer, highlighting the Most Favored Nation agreement as a positive development for the industry. BMO Capital also reiterated an Outperform rating for Pfizer, emphasizing the pricing agreement’s benefits for Medicaid customers. Additionally, Swiss pharmaceutical firms are expected to follow Pfizer’s lead in making similar price deals with the U.S. government. The Trump administration plans to launch TrumpRx.gov in early 2026, a website aimed at offering reduced prescription drug prices.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.