Freedom Capital Markets on Monday lowered its price target for Pfizer to $33.00 from $35.00 while maintaining a Buy recommendation on the stock. The revised target implies upside from Pfizer's prevailing share price of $26.90, with valuation measures indicating the shares remain undervalued on a Fair Value basis.
The analyst action follows Pfizer's fourth-quarter results, which topped consensus on both revenue and earnings per share. The company reported an earnings per share of $0.66 for the fourth quarter, outpacing the forecasted $0.58. Despite that outperformance, Freedom Capital pointed to ongoing headwinds as COVID-related revenues continue to decline and weigh on the company's top line.
For the trailing twelve months, Pfizer generated $62.58 billion in revenue and reported a robust gross profit margin of 75.8%. Even so, Freedom Capital Markets emphasized the near-term visibility concerns: the next 24 months represent what the firm calls a clear stress test as a number of Pfizer's major products across segments approach or pass exclusivity, increasing the risk of revenue pressure from generic competition.
The research house trimmed its 2026 revenue and earnings per share forecasts to reflect that expected unwind, yet it did not withdraw its Buy view. The firm cited the long-term value contained in Pfizer's development pipeline as the rationale for retaining a positive stance on the company despite reduced longer-term estimates.
Management priorities singled out by Freedom Capital Markets align with areas the company has emphasized publicly: disciplined cost control and the successful commercialization of new product launches. The research note observed that execution on those fronts will be pivotal as the company navigates expected revenue erosion from COVID products and the looming loss of exclusivity on other therapies.
Additional company developments highlighted alongside the analyst update included a new program on TrumpRx that offers steep discounts on more than 30 medicines, with savings of as much as 85% available to certain uninsured or insured patients who pay outside insurance plans. The initiative is described as intended to improve affordability for Americans across a broad range of conditions.
On the regulatory front, Pfizer has filed a supplemental application seeking expanded approval for its hemophilia therapy HYMPAVZI to include younger patients. The Food and Drug Administration has granted Priority Review for that submission, with a decision expected in the second quarter of 2026. If approved, HYMPAVZI would become the first non-factor prophylactic treatment available for children aged 6 to 11 with hemophilia B.
Investors may also note continuity in shareholder returns: the company has a long record of dividend payments, having paid a dividend for 56 consecutive years and raised its payout for 15 straight years - points that underscore a degree of management discipline in capital allocation through various market cycles.
In sum, the analyst revision reflects a mix of bright spots and structural challenges. Strong recent quarterly execution and pipeline potential sit alongside declining COVID revenue and near-term exclusivity losses, creating a backdrop in which disciplined launch execution and cost management will determine whether the company can meet or exceed the tempered forecasts put forward by Freedom Capital Markets.
Data and figures retained from the analyst note and company disclosures:
- New price target: $33.00, prior: $35.00.
- Current share price cited: $26.90.
- Trailing twelve months revenue: $62.58 billion.
- Gross profit margin: 75.8%.
- Fourth-quarter EPS: $0.66 versus $0.58 forecast.
- Dividend history: 56 consecutive years of payments; 15 consecutive years of increases.
- Program discounts: up to 85% on more than 30 medicines under the new pricing initiative.
- Regulatory milestone: Priority Review for HYMPAVZI pediatric supplemental application with an FDA decision expected in Q2 2026 for ages 6 to 11.