RBC Capital initiates Pfizer stock with underperform on revenue concerns
#Pfizer #RBC Capital #Underperform rating #Revenue decline #Pharmaceutical stocks #Stock analysis #Market outlook
📌 Key Takeaways
- RBC Capital initiated Pfizer with Underperform rating and $25 price target
- Analyst projects $15-20 billion revenue decline through 2030
- Pfizer's obesity program trails competitors with lower efficacy
- Multiple analysts have mixed views on Pfizer's stock
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RBC Capital initiated coverage on Pfizer Inc. (NYSE:PFE) with an Underperform rating and a $25.00 price target on February 24, 2026, citing concerns about a projected revenue decline of $15 billion to $20 billion through 2030 without visible pipeline offsets until 2028 or later, which contrasts with the current trading price of $27.14. Analyst Trung Huynh highlighted that while Pfizer's dividend currently yielding 6.36% provides some downside support, it cannot offset the structural headwinds and lack of 2026 catalysts compared to industry peers. The firm described Pfizer's management projections of stability through 2028 and growth beyond as ambitious given low pipeline visibility, particularly noting that Pfizer's obesity program arrives three to five years behind Eli Lilly and Novo Nordisk, showing efficacy of 12% versus 16%. RBC Capital projects a negative 5% revenue compound annual growth rate and negative 7% earnings per share compound annual growth rate from 2025 to 2030, describing it as the worst in its U.S. pharmaceutical coverage, and applied an 8.5 times multiple reflecting trough valuation ahead of expected earnings decline through 2029. Despite these concerns, Pfizer reported fourth-quarter earnings that surpassed expectations with revenue reaching $17.6 billion, beating consensus estimates of $16.6 billion, and the U.S. Food and Drug Administration granted full approval for Pfizer's BRAFTOVI in combination with other treatments for metastatic colorectal cancer with a BRAF V600E mutation, while also seeking FDA approval to expand the use of its hemophilia drug HYMPAVZI for younger patients.
🏷️ Themes
Pharmaceutical, Stock Analysis, Market Outlook
📚 Related People & Topics
Pfizer
American multinational pharmaceutical and biotechnology corporation
Pfizer Inc. ( FY-zər) is an American multinational pharmaceutical and biotechnology corporation headquartered at The Spiral in Manhattan, New York City. Founded in 1849 in New York by German entrepreneurs Charles Pfizer (1824–1906) and Charles F. Erhart (1821–1891), Pfizer is one of the oldest pharm...
RBC Capital Markets
Global investment bank
RBC Capital Markets is a global investment bank providing services in banking, finance, and capital markets to corporations, institutional investors, asset managers, and governments globally. Locations span 55 offices in 15 countries across North America, the UK, Europe, and the Asia-Pacific region....
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry AMD stock surges 14% on Meta AI partnership deal Wall Street ends higher on tech rebound ahead of State of the Union address Software stocks rebound as Anthropic partnerships ease AI disruption fears Samsung rally nears 200% as AI chip demand accelerates (South Africa Philippines Nigeria) RBC Capital initiates Pfizer stock with underperform on revenue concerns By Investing.com Analyst Ratings Published 02/24/2026, 04:54 PM RBC Capital initiates Pfizer stock with underperform on revenue concerns 0 PFE 0.30% Investing.com - RBC Capital initiated coverage on Pfizer Inc. (NYSE:PFE) with an Underperform rating and a price target of $25.00, below the current trading price of $27.14. This contrasts with InvestingPro ’s Fair Value analysis, which suggests the stock is undervalued at current levels. Analyst Trung Huynh cited a revenue decline of $15 billion to $20 billion through 2030 without visible pipeline offsets until 2028 or later. The firm said the dividend, currently yielding 6.36%, provides downside support but cannot offset structural headwinds and lack of 2026 catalysts compared to peers. According to InvestingPro , Pfizer has raised its dividend for 15 consecutive years, one of 8+ ProTips available to subscribers. RBC Capital said management’s projection of stability through 2028 and growth beyond appears ambitious given low pipeline visibility. The firm noted Pfizer’s obesity program arrives three to five years behind Eli Lilly and Novo Nordisk, showing efficacy of 12% versus 16%. The firm projects negative 5% revenue compound annual growth rate and negative 7% earnings per share compound annual growth rate from 2025 to 2030, describing it as the worst in its U.S. pharmaceutical coverage. RBC Capital applied an 8.5 times multiple, reflecting trough valuation ahead of earnings decline through 2029. The $25.00 price target represents RBC Capital’s valuation for Pfizer shares based on the firm’s financial pr...
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