Wall Street analysts are throwing shade at Pfizer's deal with Mylan, saying it will hurt profits through 2020

Bank of America Merrill Lynch downgrades to "neutral"

Bank of America Merrill Lynch downgraded the company to "neutral" from "buy" and shifted its price target to $41 per share.

Pfizer's valuation now depends on its innovation business RemainCo, which sees "dilution worse than expected," according to a BAML note. The note also said Pfizer's valuation of Upjohn "comes with a disproportionate loss of profit" for the company.

Now that Pfizer relies on RemainCo for a greater proportion of its revenue stream, BAML is "skeptical" the business can bring enough profitability to justify an overall "buy" rating.

Morgan Stanley downgrades to "equal-weight"

Morgan Stanley downgraded the company to "equal-weight" from "overweight" and moved its price target to $40 from $48.

The merger "exposes lower-than-expected earnings" for both Upjohn and RemainCo, Morgan Stanley analysts said. The bank anticipates 15% lower earnings per share in 2020, citing increased regulatory pressure, lower margins for RemainCo, and weaker Upjohn revenue.

UBS still weighing deal's impact on Pfizer rating

UBS held a "neutral" rating for Pfizer shares with a price target of $43 before news of the spin-off. The bank continues to review the deal's specifics and has not yet announced its post-merger outlook.

Pfizer's split with Upjohn may be two-to-three years too late, as off-patent drug business has only continued to contract, a UBS analyst note said. The deal's first impression "does not suggest much to be excited about," the bank added, with weakness expected to continue beyond Tuesday's stock drop.