Pfizer Downgraded to Hold, Hit by Lung Cancer Drug Trial Setback

HSBC downgraded Pfizer (PFE) from Buy to Hold.

The bank lowered its 12-month price target for the stock from $32.00 to $28.00.

A Phase 3 trial setback for lung cancer candidate sigvotatug vedotin drove the revised outlook. HSBC reduced the treatment's market probability following the results.

Analysts also cited recent management changes and a lack of immediate growth catalysts. The bank noted that Pfizer maintains an attractive dividend yield despite the short-term growth concerns.