Pfizer and Moderna Stock Wrecked as Covid Vaccine Sales Dry Up
Pfizer stock has tumbled due to shrinking vaccine sales and the potential for a social and consumer backlash. Moderna stock has also been pounded.
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While Pfizer Inc. (NYSE: PFE | SEDG Price Prediction) was literally printing money during the Covid pandemic, those days are gone. Investors not only see shrinking sales, but they see the potential for a social and consumer backlash not unlike some other U.S. companies have faced over the past year.
Pfizer stock traded as high as $59 in December of 2021. On Friday, the shares closed trading at $30.65. That is a stunning 50% plunge from the high. In addition, the company announced recently it would cut some $9 billion from its revenue estimates, as sales of the Covid vaccine and the oral drug Paxlovid have plunged. (Here’s how bad Covid is right now in every state.)
Wall Street Very Negative
Of the 17 Wall Street firms we could find that are covering Pfizer stock, only six have Buy ratings. Meanwhile, 11 have Hold or Neutral ratings. We found no Sell ratings. That’s not surprising after the massive tumble the stock took.
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Pfizer Stock Not the Only One in Trouble
Moderna Inc. (NASDAQ: MRNA) has also been pounded as sales have dried up. In September 2021, shares traded at $450. Friday’s close came in at just $80.40. Though the company has not cut estimates yet, it is expected to post a financial vaccine sales forecast next month. Until then, investors will hold their breath. (These are the youngest companies in the Fortune 500.)
Covid Booster Shots Are No Silver Lining
Despite health officials urging anyone six months and older to get a booster shot, a very skeptical public has been avoiding it, at least so far. According to a new survey, only one in four Americans are interested in yet another shot. Many fewer actually have gotten it.
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Dismal Future Likely for Pfizer Stock
As we noted, Wall Street has not totally abandoned Pfizer stock. And the strong dividend and the big sell-off over the past year are keeping most analysts from going to a Sell rating. Yet, the future is not that bright. While the company has many other products, none will be the massive cash cow that the Covid vaccine was.
J.P. Morgan analyst Chris Schott said this last Friday when he reiterated the firm’s Neutral rating on Pfizer stock and dropped its $36 price target to $34:
We continue to expect shares to be range-bound. We see fairly limited downside from current levels, which is supported by the core business with earnings in the low ~$2 range today (by our math) and growing to ~$3 by 2030 (and overall earnings in the ~$3 range for 2024, increasing to ~$3.60 by 2030). At the same time, we see no clear path for shares to recover given continued uncertainty surrounding the company’s COVID franchise and pipeline. Remain Neutral.
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
