Analyst: Pfizer's Covid Estimates Need to Drop

BMO also cut its price target on the equity

Jake Scott

Deputy Editor

Jan 26, 2023 at 9:06 AM

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.

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!