Analyst: Pfizer's Covid Estimates Need to Drop

BMO also cut its price target on the equity

Deputy Editor
Jan 26, 2023 at 9:06 AM
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UBS downgraded Pfizer Inc. (NYSE:PFE) to "neutral" from "buy" this morning, citing lower Covid-19 expectations. The analyst also slashed its price target to $47 from $55, noting the pharmaceutical giant's Covid estimates need to drop, while its broader pipeline upside is minimal in the near- to-mid-term. PFE was last seen 1.4% lower premarket in response. The stock has shed 12% already in 2023, and hasn't posted a weekly win in over a month. 

In the options pits, short-term options traders are operating with a put-bias. This is per PFE's Schaeffer's put/call open interest ratio (SOIR) of 1.01, which stands higher than 87% of annual readings. 

Now looks like a good time to speculate on PFE's next move with options. Pfizer stock's Schaeffer's Volatility Index (SVI) of 26% stands in the 13th percentile of readings from the past year, suggesting options traders are pricing in low volatility expectations right now.


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