Pfizer’s stock received a boost as Morgan Stanley raised its price target from $32 to $33, reflecting optimism after the pharmaceutical giant reported better-than-expected Q2 results. Adjusted earnings surged 20% year-over-year to $9.6 billion, while revenue grew modestly to $28.4 billion. The company outperformed analyst estimates with Q2 earnings of $0.78 per share, 37% above projections, and revenue of $14.7 billion versus $13.47 billion expected. Management also raised its full-year adjusted EPS guidance to $2.90–$3.10, citing cost-cutting measures and strong performance from drugs like Eliquis and Xeljanz.
Regulatory Risks Loom Despite Growth
While Pfizer’s fundamentals remain strong, regulatory challenges cast a shadow. Potential U.S. tariffs of up to 250% on drug imports and government-mandated price cuts threaten profitability. The company has factored these risks into its 2025 outlook, but investor sentiment remains mixed. Shares rose 5% post-announcement, trading at $24.50, significantly outpacing the S&P 500. Analysts note the stock’s recovery from pandemic lows but caution that regulatory decisions could dictate its future trajectory.
