Jefferies thinks it's time for investors to go long on Pfizer . The firm upgraded the pharmaceutical stock to buy from hold in a Monday note and increased its price target to $39 per share from $38. Jefferies' forecast calls for roughly 21% upside from Friday's $32.11 close. Analyst Akash Tewari said that while the bank has been critical on Pfizer for much of 2023, it's now taking a long-term view on the stock after the company cut its full-year guidance last week. This could present an attractive buying opportunity into the name, he said. "[A]s we stare in the face of another year of macro uncertainty and a looming recession, we think it's time to flip to long on PFE, post its Friday COVID guidance cut + $3.5Bn cost reduction plan," Tewari said. "In our view, PFE has one of the most intriguing catalyst paths over the next yr in large cap pharma and trades ~15% below where it traded at the start of the COVID pandemic." The analyst added Pfizer has already presented "an impressive innovation framework" that has helped the company adapt to health-care headwinds, which underpinned the bullish long-term view. "During the pandemic, Pfizer in collaboration with Biontech rolled out COVID vaccines in a historical timeframe. Pfizer's COVID antiviral Paxlovid also helped the fight against the pandemic," he said. "We are closely monitoring how Pfizer is going to maneuver itself in the post-COVID world, especially with a sustainable pricing of COVID products to ensure a wider access." Pfizer has slumped more than 37% this year. It has also dropped 45% since 2021, the year it surged 60% on enthusiasm around the global economy reopening following the Covid-19 lockdowns. PFE YTD mountain Pfizer stock YTD — CNBC's Michael Bloom contributed to this report.
