Pfizer - Expect A Fresh Wave Of New Launches: Systematix Initiates Coverage With A 'Buy'
Given the company’s strong cash position, we expect a potential special dividend payout in the near future.
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Systematix Research Report
We initiate coverage on Pfizer Ltd. with a 'Buy' rating and a target price of Rs 4,954, based on 30 times FY25E earnings per share.
This is an opportune time to invest in Pfizer, considering the-
fresh wave of new chemical entity launches expected in India from the parent pipeline,
strength of its core brands, and
correction in valuations, post recent growth challenges.
Our estimate of 12.3% compound annual growth rate in earnings over FY23 to FY25E would be led by a mix of revenue growth (mid-single digit) and cost rationalisation (recently implemented VRS scheme).
Revenue growth is likely to be subdued (mid single digit) in the near term, but once the parent entity rolls out its late-stage NCE pipeline in India, growth trajectory could surprise on the upside.
Key NCE launches we expect are Prevenar 20 – a pneumococcal vaccine that offers broader protection than the ones in the market currently, Aztreonam-avibactam (PF06947387) – a novel antibiotic that works against drug-resistant bacteria, and Etrasimod, meant to cure moderate to severe ulcerative colitis.
Given the company’s strong cash position, we expect a potential special dividend payout in the near future.
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