Pfizer Is Worst-Performing US Large-Cap Pharma Stock This Year, Its Investment Case Is Complex Yet Rewarding

Credit Suisse has initiated coverage on Pfizer Inc PFE with an Outperform rating and a price target of $55.
The analyst says that Pfizer has been the worst-performing U.S. Large-Cap Pharma this year, falling 15% on uncertainties with COVID-19 and slowing vaccine sales.
Heading into 2023, Credit Suisse thinks 2023 forecasts for COVID-19 products remain uncertain, and it is difficult to see a meaningful catalyst to reverse this share price decline.
Related: Pfizer's Q3 Earnings Surpasses Estimates, Lifts Forecasts For COVID-19 Vaccine Sales By $2B.
The analyst says the strength of Pfizer's base business is underestimated, where a consistent cadence of smaller, positive pipeline events combined should accelerate growth.
Higher long-term COVID vaccine sales would augment this at a commercial price, an overlooked pipeline, and expected business development deals. Credit Suisse views valuation as undemanding, especially after this year, with the target price implying a 13% upside potential to the current price.
Price Action: PFE shares are down 0.72% at $47.98 on the last check Friday.
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