Pfizer (PFE) Navigates Patent Losses With Strategic Cost Controls, BMO Capital Reaffirms Outperform Rating

Pfizer Inc. (NYSE:PFE) ranks among the best stocks under $25 to buy now. Citing the company’s cautious 2026 outlook, BMO Capital reaffirmed its Outperform rating and $30 price target for Pfizer Inc. (NYSE:PFE) on December 17. The pharmaceutical company anticipates adjusted profit to be between $2.80 and $3 per share in the upcoming year. In comparison to the updated 2025 sales forecast of $62 billion, Pfizer’s revenue is anticipated to be essentially flat, coming between $59.5 billion and $62.5 billion.

Pfizer Inc. (NYSE:PFE) also forecasted a $1.5 billion year-over-year reduction in sales when certain medications lost market exclusivity. Some blockbuster treatments, such as the company’s pneumonia vaccination Prevnar, are seeing stronger rivalry from competitors.

BMO observed that Pfizer’s softer 2026 projection is mostly driven by prolonged uncertainty in its Covid business, which is expected to fall 23% year-over-year to around $5 billion in total revenue.

BMO anticipates that future talks will center on Pfizer’s recent purchase of Metsera and the company’s efforts to deliver ongoing cost savings, which have already exceeded their 2025 projections.

Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.

While we acknowledge the potential of PFE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.