Analyst Maintains Buy Rating for Pfizer Despite Lowered Price Target

Pfizer US7170811035

Freedom Capital Markets continues to advocate purchasing shares of pharmaceutical giant Pfizer, even as the firm has adjusted its valuation outlook. The analysts have lowered their price target for the stock from $35 to $33, citing a pivotal transitional period ahead for the company. Over the next two years, Pfizer faces the dual challenge of offsetting declining revenue from its COVID-19 products and managing the loss of patent exclusivity for several key blockbuster drugs.

The new target of $33 still represents a significant potential upside from the stock's recent trading level of approximately $26.90. The research note underscores that Pfizer's future trajectory will hinge on two critical factors: the successful commercial launch of new products and rigorous cost management.

Pfizer's financial report for the fourth quarter of 2025, released on February 3, painted a mixed picture. The company posted adjusted earnings per share of $0.66, surpassing analyst consensus estimates of $0.58. On the revenue side, however, performance was weaker. Quarterly sales came in at $17.6 billion, marking a 3% decline compared to the same period last year.

This dip was primarily driven by the continued sharp contraction in COVID-related revenue. Excluding this segment, Pfizer's core portfolio demonstrated growth, fueled by recently launched products and assets acquired through business development.

Weight-Loss Drug Candidate Under Scrutiny

A significant focus for investors is Pfizer's pipeline in the highly competitive obesity treatment market. In early February, the company released Phase 2b trial data for its investigational drug, PF-08653944, a monthly-administered therapy. After 28 weeks of treatment, trial participants experienced body weight reductions ranging from 10% to 12.3%.

While the study met its primary endpoints, the market reaction was measured. Investors are carefully comparing the efficacy data against established GLP-1 agonists offered by competitors. Pfizer's current strategy is to advance this candidate into Phase 3 clinical trials in 2026, evaluating it both for obesity alone and in combination with type 2 diabetes.

Key Data Points

Metric	Value	Note
Revised Price Target	$33.00	Previous: $35.00
Investment Rating	Buy	Freedom Capital Markets
Adjusted Q4 EPS	$0.66	Consensus: $0.58
Q4 Revenue	$17.6 B	Down 3% year-over-year
Current Share Price	~$26.90	As of analyst report
Obesity Drug Candidate	PF-08653944	Phase 2b: up to 12.3% weight loss

In its analysis, Freedom Capital Markets points to the "long-term value of [Pfizer's] pipeline" as the foundation for its sustained Buy recommendation. The firm anticipates that Pfizer will execute on its announced cost-reduction initiatives and commence its Phase 3 programs as scheduled. The initiation of these crucial studies later in the year is expected to be a major catalyst influencing the stock's direction.