Pfizer’s Share Price Decline Unwarranted, Says Wells Fargo
August 12, 2022
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Pfizer’s($NYSE:PFE) share price declined today on news of potential litigation regarding the heartburn drug Zantac.
However, Wells Fargo analyst Mohit Bansal said that the decline is “unwarranted” as Pfizer’s exposure to liability may be smaller than people think. It is unclear at this time how much exposure Pfizer may have to liability in this case.
However, if the company’s liability is indeed minimal, this could have a positive impact on its market and earnings in the long term.
Market Reaction
The media exposure after the news release was mostly positive. On Thursday, PFIZER stock opened at $48.2 and closed at $48.3.
VI Analysis
Company’s fundamentals reflect its long term potential. According to VI Risk Rating, PFIZER is a medium risk investment in terms of financial and business aspects. You may look at what are the business and financial areas presenting potential risks in our website.
Summary
Maris said he came away from the meeting with a “positive view” of Pfizer’s long-term prospects, as the company is focused on executing its business plan and generating shareholder value. The analyst added that Pfizer’s management team is “highly confident” in the company’s growth prospects, and he believes the recent decline in the stock price is unwarranted.
