Analysts Are Cutting Price Targets of These 5 Stocks

4. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 77

Pfizer Inc. (NYSE:PFE) shares slid nearly four percent on Tuesday, January 17, after Wells Fargo downgraded the pharmaceutical giant from “Overweight” to “Equal Weight,” citing near-term headwinds. The research firm also reduced its price target for PFE stock from $54 per share to $50 per share.

Analyst Mohit Bansal expects an earnings down-revision cycle in the near term. Bansal also pointed towards margin pressure on Pfizer’s key segments amid elevated spending on new launches. Nevertheless, the analyst expressed optimism over the growth prospects of Pfizer Inc. (NYSE:PFE) in the long term.

Separately, investment management firm Diamond Hill Capital also shared its views about the growth outlook of Pfizer Inc. (NYSE:PFE) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”