Pfizer downgraded on competitive headwinds by RBC

 

• Noting that the ‘sustainable opportunity in 2022E and beyond’ for the company’s COVID-19 vaccine is 'far from clear', RBC Capital Markets downgrades Pfizer (NYSE:PFE) to ‘Sector Perform’ from 'Outperform' with a price target of $42.00, an upside of ~8.5% to yesterday’s close. The shares trade -1.8% lower, adding to the -1.2% loss in value in the year so far.
• Last week, the company made headlines when it’s COVID-19 vaccine candidate co-developed with BioNTech SE (NASDAQ:BNTX) became the first to win the emergency use authorization in the U.S.
• Despite the approval, the analysts led by Randall Stanicky argue, ‘a bull case vaccine scenario is largely in the stock’ ahead of ‘competitive vaccine updates possibly with superior dosing/logistics.’ 
• However, the analysts keep the core ‘2021E–25E “Biopharma” (ex-vaccine) revenue and EPS CAGRs’ unchanged, noting any upward revision should come from the pipeline.
• The rival vaccine candidate from Moderna (NASDAQ:MRNA) is set to undergo an expert panel review, potentially leading to a EUA nod later this week. Unlike Pfizer/BioNTech shot, Moderna’s jab, based on similar technology with a comparable efficacy level, does not require rigorous ultracold storage requirements.
• https://seekingalpha.com/news/3644919-pfizer-downgraded-on-competitive-headwinds-rbc-capital-markets