PFE – Market expectations are for PFE to see stable Uniform ROA at current levels, driven by competitive headwinds, pricing concerns, and recent developments

• • • Pfizer Inc. (PFE:USA)currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 15.4x Uniform P/E. At these levels, the market is pricing in expectations for Uniform ROA to remain at current 19%-20% levels through 2021, with these muted expectations being driven by competitive headwinds, pricing concerns, and recent developments
    • Specifically, markets are pricing in uncertainty surrounding the potential of PFE’s pipeline, made more important by the fact that the firm is aiming to divest its non-core assets. Additionally, the firm may face further LOE and competition-related headwinds going forward, making it increasingly difficult for them to drive material operational improvements, and may also face pricing pressures as a result of regulation