قالب وردپرس درنا توس
Home / Business / Morgan Stanley downgrades Pfizer, says Mylan sales this week revealed some bad news

Morgan Stanley downgrades Pfizer, says Mylan sales this week revealed some bad news



Pfizer signage appears on a screen on the floor of the New York Stock Exchange.

Michael Nagle | Bloomberg | Getty Images

According to Morgan Stanley.

The company downgraded Pfizer to equal weight from overweight and set the price target to $ 40 per share from Morgan Stanley.

$ 48 per share on Tuesday.

"Pfizer announced it is ending its Upjohn business, but the real news was weaker underlying earnings" in the remaining businesses, Morgan Stanley's David Risinger said in a note to clients.

On Monday, Pfizer announced its plans to dispose of its off-patent drug business, Upjohn, and merge it with generic drug manufacturer Mylan with revenue in the second quarter. The company reported on profits that beat analysts' expectations, but revenue was missed. Risinger said although the Upjohn merger with Mylan is a "strategically sound deal", the move revealed "earning power that is much weaker than we realized."

Risinger said lower earnings were driven by recent negative regulatory action, lower margins for Pfizer's Innovative Business and weaker economy in Upjohn.

Morgan Stanley also lowered revenue estimates in 2020 by 9% from $ 48 billion to $ 54 billion and adjusted earnings per share down 1

5% to $ 2.56 from $ 3.02.

Shares of Pfizer fell more than 2.5% in trading on the premarket on Tuesday, after falling nearly 4% on Monday.

For the second quarter, Pfizer reported revenue of 80 cents on revenue of $ 13.26 billion, while analysts polled by FactSet anticipated earnings per share of 75 cents on revenue of $ 13, $ 4 billion.

Pfizer's shares are more than 5% this year.

– with reports from CNBC's Michael Bloom


Source link