Pfizer: Ignore The Dead Cat Bounce

Summary:

  • Pfizer’s Q1 earnings release showed strong performance, beating revenue estimates and providing positive guidance for FY 2024.
  • However, secular weaknesses such as declining operating margins and the need for new products to replace expiring patents persist.
  • The company’s highly leveraged balance sheet and overvaluation after a recent rally led to a downgrade to ‘Strong Sell’.
Pfizer

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Introduction

I had a bearish thesis about Pfizer (NYSE:PFE) in February, but the stock price increased by 3% since then. Overall, my thesis kept up well, but the stock rallied by almost 8% last week after the last week’s earnings release. Today, I want to


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