A few big biopharma names were on the move Tuesday morning, and analysts are taking their shot at them. A couple of these big names saw weaker-than-expected earnings, but while there was one sizable surprise to the downside, the rest seem to be keeping pace.
24/7 Wall St. is taking a closer look at these companies, their updates and what analysts are saying about their stocks on Tuesday morning.
Pfizer Inc. (NYSE: PFE) was perhaps the biggest surprise, whiffing on the topline but still getting the earnings beat. Overall, the mixed fourth quarter might be bad in the short term, as reflected by the price action, but the long-term could still see some upside for the stock.
Cantor Fitzgerald reiterated an Overweight rating for Pfizer with a $75 price target, which implies upside of 41% from the most recent closing price of $53.21. The firm is confident that Pfizer can meet its guidance for a five-year revenue compound annual growth rate (CAGR) of at least 6%, or even higher with its massive COVID-19 franchise and additional mRNA projects. So, Cantor Fitzgerald thinks that Pfizer’s sales growth should be driven by solid execution and innovation, which should increase earnings revisions and multiple expansion, ultimately sending shares higher.
Pfizer stock was last seen down 5% to just over $50, in a 52-week range of $33.36 to $61.71. The market cap is $285 billion.
Amgen Inc. (NASDAQ: AMGN) is on the other side of the coin, in that, despite posting mixed earnings as well, this stock went in an entirely different direction. For the fourth quarter, Amgen had a slight top-line miss and a beat on the bottom line.
Overall, the 2021 full year product sales were flat compared with 2020, with growth in unit volumes offset by a decline in net selling price. Sales of Prolia, Blincyto, Xgeva and Vectibix beat the consensus for the quarter, and they were offset by sales of Lumakras, Evenity, Kyprolis and Repatha.
Amgen stock was trading up over 5% at around $235, in a 52-week range of $198.64 to $261.00. The consensus price target is $239.96, and the market cap is $132.3 billion.
Eli Lilly & Co. (NYSE: LLY) was reiterated with a Buy rating at Guggenheim, and its price target was lowered to $292 from $300. This implies upside of 20% from the most recent closing price of $243.55.
Guggenheim based this call primarily on continued strength of GLP-1 category (diabetes), as well as strong OUS sales growth. At the same time, the firm is adjusting its 2022 total sales estimates to $27.9 billion, which compares with guidance in the range of $27.8 billion to $28.3 billion. This adjustment was driven by a one-year delay to sales of donanemab (for Alzheimer’s), offset by endocrinology sales growth.
Eli Lilly stock was trading down about 2% near $239, in a 52-week range of $178.58 to $283.90. The market cap is $228 billion, and the consensus price target is $296.46.
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