Morgan Stanley Maintains a Hold on Pfizer (PFE)

Pfizer Inc. (NYSE:PFE) is one of the top low volatility healthcare stocks to buy now. On July 22, Morgan Stanley analyst Terence Flynn maintained a Hold rating on Pfizer Inc. (NYSE:PFE) and set a price target of $32.00.

A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution.

One of the primary factors behind this cautious rating is the impending patent expiration for Pfizer’s Tafamidis, marketed as Vyndamax and Vyndaqel, which may result in a considerable revenue decline.

The analyst reasoned that the patent cliff, which is expected later in the decade, may lead to lost revenue of around $20 billion. The market recognizes this factor, as it is reflected in Pfizer Inc.’s (NYSE:PFE) lower P/E ratio compared to historical industry averages and the S&P 500.

Flynn further stated that while Tafamidis is a successful product with expected sales of $6.4 billion in 2025, the patent expirations in the US and EU pose a challenge to Pfizer Inc. (NYSE:PFE).

Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.

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Disclosure: None. This article is originally published at Insider Monkey.