Stock market analysts discussed the concerns Pfizer may encounter as they believe the coronavirus or COVID-19 pandemic has peaked.
This event comes as the New York City-headquartered multinational pharmaceutical and biotechnology corporation’s 2022 outlook surfaced in business news headlines this week.
We are interested in learning how stock market experts view Pfizer’s business outlook for this year. We think our readers will also take interest and benefit from reading this report, considering that the American firm has dominated the coronavirus vaccine market since the pandemic’s height.
Based on the update posted online by finance, business, and markets news outlet The Financial Times, Pfizer’s full-year outlook for this year has fallen short of Wall Street analysts’ bullish expectations. This development sparked a sell-off in the drugmaker’s shares.
Pfizer cited that it anticipated generating record revenues of between US$98 billion and US$102 billion this 2022, driven by US$32-billion sales of its COVID-19 vaccine and US$22 billion in sales of its antiviral pill.
According to FactSet, Pfizer’s 2022 outlook missed consensus forecasts of US$103.2 billion. Stock market analysts expect vaccine sales of US$34 billion this year.
Additionally, this 2022, Pfizer predicted earnings of US$6.35 to US$6.55 per share, which is below consensus forecasts of US$6.71 per share when adjusted for acquisition-related costs and other significant items.
Last Tuesday, February 8, Pfizer shares plummeted as much as 7 percent before trimming some losses. This event happened as investors looked beyond the drug company’s better-than-expected fourth-quarter profits.
With this reality, stock market analysts relayed that Pfizer’s 2022 outlook emphasized the important challenge the firm faces in meeting lofty growth expectations. Kevin Gade is Bahl and Gaynor’s portfolio manager.
He pointed out that the missed guidance on COVID-19 product sales might reflect a conservative steer from Pfizer, as this company tends to guide numbers on doses it has already contracted to sell.
Gade added that Pfizer could reflect that the COVID-19 pandemic had peaked as well, and that demand might be lower in the future for vaccines and boosters. He remarked that they praise Pfizer for winning against the COVID-19 pandemic.
However, the stock market expert wondered if the vaccine maker could take the dollars from this point and develop the base enterprise. We think it is helpful for Pfizer to look into the perspectives of Wall Street analysts.
As we all know, the medicine maker has been at the forefront of developing coronavirus or COVID-19 treatment and vaccines. Pfizer’s messenger RNA jab it developed with BioNTech grabbed a whopping 70-percent market share in the United States and the European Union.
We think considering the current viewpoints of stock market analysts can help Pfizer drive its business in the appropriate direction, thereby furthering its long-term growth.