Citi maintains a "Hold" rating on Pfizer (PFE) with a target price of $30, following the FDA's decision to place a clinical hold on all infant RSV vaccine trials due to safety concerns with Moderna's candidates. This development is expected to benefit Pfizer's Abrysvo, the only approved maternal RSV vaccine, positioning it as a dominant player in the infant vaccine market. Citi notes, "We believe Pfizer will dominate the maternal/infant RSV vaccine space in near to distant future," highlighting the potential for Abrysvo to capture a significant share of the multi-billion-dollar opportunity in this segment.
Despite this positive outlook for Abrysvo, Citi remains cautious, citing a preference for "cleaner growth stories" and the need for multiple positive pipeline developments before a stock rerating. The report also mentions potential competition from Merck's clesrovimab, which has shown promising clinical data for RSV treatment in infants.
Pfizer's stock was trading at $25.38 as of December 12, 2024, with a slight increase of 0.04% after market close.