Citi Maintains a Hold Rating on Pfizer (PFE) Amidst Pricing Policy Headwinds
On May 21, analyst Geoff Meacham of Citi maintained a Hold rating on Pfizer Inc. (NYSE:PFE), reiterating the price target of $25. The analyst acknowledged the strong Q1 2025 performance of the company. However, he remains cautious due to the potential Most Favored Nation (MFN) pricing policy headwinds.
A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution.
The Most Favored Nation (MFN) pricing policy is a government initiative in the United States to lower prescription drug prices to ensure that the prices paid by US government programs do not exceed the lowest prices paid by comparable developed countries. This policy has resurfaced under the Trump administration in 2025. The Trump administration argues that this policy will result in US drug prices dropping by 30% to 80%.
During the first quarter 2025 earnings call, Dave Denton, CFO of Pfizer Inc. (NYSE:PFE), noted the changes in the IRA Medicare Part D redesign, tempered US revenue. The IRA Medicare Part D is another government initiative aimed at cutting drug prices. Analyst Meacham noted that although the company is actively pursuing opportunities in oncology and cardio-metabolic assets, the market remains overvalued. Thereby requiring a disciplined approach to business development. Moreover, the pricing policy headwinds present challenges that Pfizer Inc. (NYSE:PFE) has to navigate carefully, thereby justifying the Hold rating.
While we acknowledge the potential of PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about the .
READ NEXT: and .
Disclosure: None
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Entrepreneur
28 minutes ago
- Entrepreneur
Using AI in Customer Service? Don't Make These 4 Mistakes
AI is revolutionizing customer service in 2025, offering speed, personalization and efficiency. But to avoid frustrating users, businesses must ensure the following things. Opinions expressed by Entrepreneur contributors are their own. AI is omnipresent in 2025 in all areas of the business sphere, including customer service. And for good reason. Used right, AI can provide invaluable insights into your customers' behaviors and preferences, boost the efficiency of your customer service team and increase overall satisfaction. Between dynamic personalization, streamlined purchase processes and predictive customer support, many small businesses are leveraging AI to level the playing field and provide enterprise-grade customer service. However, despite AI's massive potential, there are several potential pitfalls when using AI in customer service. At worst, AI can scare off customers or generate frustration, rather than helping to streamline processes. Here are the four most common mistakes — and how to avoid them. Related: How Small Businesses Can Leverage AI Without Breaking the Bank 1. Frustrating generic chatbots To start with, chatbots can be a great asset to your team members and customers alike. They can speedily handle routine queries, free up your agents' capacities, respond to customers even outside regular business hours and reduce wait times. However, to be effective, chatbots need to be well-trained and personalized. Unfortunately, many companies — in a rush to stay ahead in the AI race — deployed chatbots that ask too many questions, give generic answers and fail to solve queries. In one hilarious example, NYC's MyCity chatbot kept giving wrong answers even six months post-deployment and after $600,000 in investments, misinforming users about legal requirements for business owners and even basic facts such as the minimum wage. Overall, 80% of people reported that interactions with chatbots have increased their frustration rather than leading to quicker solutions to the issues they were facing. To avoid this, it's crucial that chatbots are trained well on company-internal data. Ideally, they should be able to leverage customer-specific data across a number of different channels in order to provide personalized, efficient support to every person who reaches out. 2. Unaccessible siloed data On that note, another common pitfall to avoid when implementing AI in customer service is data siloing. One of AI's greatest strengths is its capacity to process huge amounts of data and unearth patterns and trends, condensed into actionable insights. These insights can then be leveraged for personalization and targeted strategy adjustments. However, that's only possible if AI actually has access to all the necessary data elements — and that is a challenge many small businesses are currently facing. In fact, a recent study by Nextiva, a market leader in customer experience software solutions, found that among company leadership, data siloing was identified as one of the most common barriers to AI implementation. In the study, 39% of respondents agreed that they "struggled with accessibility, aggregation, integration and structure of real-time and historical data." To avoid this limitation, it's essential to audit data storage and integration as soon as you start planning your AI implementation strategy. Making sure from the start that the systems you are considering integrate well — or that bridge solutions are at least available — will avoid unnecessary siloing and frustration down the line. Related: AI Can Give You New Insights About Your Customers for Cheap. Here's How to Make It Work for You. 3. Going overboard on hyper-personalization and automation On the other end of the spectrum are businesses that go overboard in their enthusiasm for AI, to a degree that can appear off-putting to many customers. This includes hyper-personalization and automation processes. While personalization is a key advantage of AI and can boost the efficiency of customer service agents and the satisfaction of the people they interact with, you don't want to appear omniscient either. Having the impression that a company knows everything about them before they even talk to you is seen as acutely creepy by many customers. Salesbots, in particular, often trigger the uncanny valley effect, or scare off potential customers by leveraging information they don't feel they ought to have access to. To steer clear of this particular pitfall, it's essential to carefully calibrate the level of personalisation you implement and weigh its potential benefits in boosting conversions against customers' perception of intrusiveness. 4. Forgetting human escalation options Finally, a widespread mistake small businesses make in leveraging AI for customer service is to neglect human escalation options, especially in customer support. No matter what your AI can do, it's always necessary to offer customers the option to talk to a human agent instead. There is nothing more frustrating for a customer facing an urgent problem than being stuck in an ineffective conversation loop with a chatbot or a virtual phone agent when an actual person would clearly help them reach a solution far more efficiently. Outside business hours, when AI is the only one holding down the fort, it's often enough to offer customers the option to leave a message and assure them you will contact them as soon as possible. Other than that, though, you need to give people the option of a human lifeline to help put out an urgent fire. Related: Does AI Deserve All the Hype? Here's How You Can Actually Use AI in Your Business Conclusion In 2025, AI is an incredible asset that small businesses can leverage to elevate their customer service. It is, however, not a panacea. To effectively harness the potential of AI and avoid common pitfalls, it's necessary to carefully plan and train the systems you're deploying, exercise discretion with respect to personalization and implement a human failsafe option. By sticking to these tenets, though, you'll be able to make the most of the opportunities AI has to offer for small businesses in customer service and increase your overall customer satisfaction.
Yahoo
30 minutes ago
- Yahoo
AI chatbots and TikTok reshape how young people get their daily news
Artificial intelligence is changing the way people get their news, with more readers turning to chatbots like ChatGPT to stay up to date. At the same time, nearly half of young adults now rely on platforms such as TikTok as their main source of news. The findings come from the Reuters Institute's annual Digital News Report, released this week. The Oxford University-affiliated study surveyed nearly 97,000 people across 48 countries to track how global news habits are shifting. The study found that a notable number of people are using AI chatbots to read headlines and get news updates – a shift described by the institute's director Mitali Mukherjee as a 'new chapter' in the way audiences consume information. While only 7 percent overall say they use AI chatbots to find news, that number rises among younger audiences – 12 percent of under-35s and 15 percent of under-25s now rely on tools such as OpenAI's ChatGPT, Google's Gemini or Meta's Llama for their news. 'Personalised, bite-sized and quick – that's how younger audiences want their news, and AI tools are stepping in to deliver exactly that,' Mukherjee noted. Beyond reading headlines, many readers are turning to AI for more complex tasks: 27 percent use it to summarise news articles, 24 percent for translations, and 21 percent for recommendations on what to read next. Nearly one in five have quizzed AI directly about current events. (with newswires) Read more on RFI EnglishRead also:AI steals spotlight from Nobel winners who highlight Its power and risksAI showcase pays off for France, but US tech scepticism endures'By humans, for humans': French dubbing industry speaks out against AI threat
Yahoo
30 minutes ago
- Yahoo
Declining Stock and Decent Financials: Is The Market Wrong About Dayforce Inc. (NYSE:DAY)?
Dayforce (NYSE:DAY) has had a rough three months with its share price down 6.0%. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Specifically, we decided to study Dayforce's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Dayforce is: 1.0% = US$26m ÷ US$2.6b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.01 in profit. View our latest analysis for Dayforce Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. It is quite clear that Dayforce's ROE is rather low. Even compared to the average industry ROE of 20%, the company's ROE is quite dismal. Dayforce was still able to see a decent net income growth of 15% over the past five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. As a next step, we compared Dayforce's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 11%. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is DAY fairly valued? This infographic on the company's intrinsic value has everything you need to know. Dayforce doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the decent earnings growth number that we discussed above. In total, it does look like Dayforce has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
