Pfizer: Challenges Loom Amid Overvaluation

Summary

• I have downgraded Pfizer Inc. stock to Strong Sell due to stagnant revenue, substantial patent cliffs, regulatory, legal, and reputational headwinds, and overvaluation concerns.
• Despite a 24.7% YoY revenue growth in FQ4, Pfizer's financial flexibility remains weak with significant net debt and no new products to offset patent losses.
• Valuation analysis indicates PFE stock is overvalued with a fair share price below $25, and consensus estimates forecast a below 2% dividend growth rate for the next two fiscal years.
• While Wall Street analysts see a 21% upside potential, I emphasize multiple target price downgrades and rare trading above the average target price over the last five years.