Pfizer: Too Early For A Turnaround (Archive)
Pfizer’s oncology pivot and CEO incentives cloud the timing and quality of any turnaround.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- I had a 'Hold/Neutral' stance on Pfizer in my last update, but the stock has performed worse than my expectations; lagging the S&P 500 by 8.46%. Yet, I maintain my stance.
- I've been skeptical of Pfizer's expensive acquisition of Seagen. I believe the short-term performance incentives of the CEO are not well-aligned to value creation.
- Pfizer's business has seen stagnant sales over the last few years besides the one-off of COVID vaccines. The oncology drugs pipeline shows us that the key catalysts are in 2025-2026.
- Hence, I believe it is too early for a turnaround case to be made, especially since there is no compelling valuation discount for buyers.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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