Pfizer's (PFE) initial 2025 guidance signals relief to investors as it highlights stabilizing business with improving margins, UBS said in a note emailed Wednesday.
Pfizer on Tuesday projected higher earnings for 2025 and revenue in line with this year's likely result as the pharmaceutical giant looks to continue "disciplined execution" and cost cuts.
Revenue for next year is pegged at $61 billion to $64 billion, matching Pfizer's 2024 guidance given in October, which was at the time raised by $1.5 billion at the midpoint. Pfizer reiterated the 2024 outlook on Tuesday.
The company said it sees adjusted earnings of $2.80 to $3 a share. For this year, Pfizer affirmed its guidance for adjusted EPS of $2.75 to $2.95.
UBS said it expects $2.96 in earnings on revenue of $63.4 billion for 2025.
The firm said upside to the company's stock could come from the data readout of the once-a-day version of Pfizer's weight-loss pill danuglipron and focus on key growth asset in 2025 such as Nurtec and Abrysvo.
UBS has a neutral rating on the stock with a price target of $31.
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