Pfizer gets upgrade at Jefferies, which says there’s a buying opportunity in the pharma giant’s stock

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Jefferies thinks its time for investors to go long on Pfizer . The firm upgraded the pharmaceutical stock to buy from hold in a Monday note and increased its price target to $39 per share from $38. Jefferies’ forecast calls for roughly 21% upside from Friday’s $32.11 close. Analyst Akash Tewari said that while the bank has been critical on Pfizer for much of 2023, it’s now taking a a long-term view on the stock after the company cut its full-year guidance last week. This could could present an attractive buying opportunity into the name, he said. “[A]s we stare in the face of another year of macro uncertainty and a looming recession, we think it’s time to flip to long on PFE, post its Friday COVID guidance cut + $3.5Bn cost reduction plan,” Tewari said. “In our view, PFE has one of the most intriguing catalyst paths over the next yr in large cap pharma and trades ~15% below where it traded at the start of the COVID pandemic.” The analyst added Pfizer has already presented “an impressive innovation framework” that has helped the company adapt to healthcare headwinds, which underpinned the bullish long-term view. “During the pandemic, Pfizer in collaboration with Biontech rolled out COVID vaccines in a historical timeframe. Pfizer’s COVID antiviral Paxlovid also helped the fight against the pandemic,” he said. “We are closely monitoring how Pfizer is going to maneuver itself in the post-COVID world, especially with a sustainable pricing of COVID products to ensure a wider access.” Pfizer has slumped more than 37% this year. It has also dropped 45% since 2021, the year it surged 60% on enthusiasm around the global economy reopening following the Covid-19 lockdowns. PFE YTD mountain Pfizer stock YTD — CNBC’s Michael Bloom contributed to this report.