The Zacks Analyst Blog Highlights Alibaba, Pfizer, MercadoLibre and SIFCO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2025
0mins
Source: NASDAQ.COM
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Analyst Views on PFE
Wall Street analysts forecast PFE stock price to rise
16 Analyst Rating
5 Buy
11 Hold
0 Sell
Moderate Buy
Current: 24.070
Low
24.00
Averages
28.56
High
35.00
Current: 24.070
Low
24.00
Averages
28.56
High
35.00
About PFE
Pfizer Inc. is a research-based, global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. Its Biopharma segment includes the Pfizer U.S. Commercial Division, and the Pfizer International Commercial Division. Its product categories include oncology, primary care and specialty care. Its oncology products include Ibrance, Xtandi, Padcev, Adcetris, Inlyta, Lorbrena, Bosulif, Tukysa, Braftovi, Mektovi, Orgovyx, Elrexfio, Tivdak and Talzenna. Its primary care products include Eliquis, Nurtec ODT/Vydura, Zavzpret, the Prevnar family, Comirnaty, Abrysvo, FSME/IMMUN-TicoVac, Nimenrix, Trumenba, and Paxlovid. Its specialty care products include Xeljanz, Enbrel (outside the United States and Canada), Inflectra, Abrilada, Cibinqo, Litfulo, Eucrisa, Velsipity, the Vyndaqel family, Genotropin, and others. Its PF-08653944 is an ultra-long-acting fully biased GLP-1 receptor agonist.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Team-Based Approach: The selection process emphasizes a team-based approach to ensure the new FDA commissioner has a balanced team around them, reflecting a deep reflection on internal management at the FDA to tackle future challenges.
- Former Commissioner Resignation: Former FDA chief Marty Makary resigned in May after a tumultuous tenure, highlighting instability in FDA leadership that could impact regulatory consistency in the pharmaceutical industry.
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- Policy Impact: Uncertainties in industry policy changes and regulatory environments may exacerbate performance fluctuations, affecting long-term strategic planning and investment decisions for companies.
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- Candidate List Submitted: The list of finalists for the FDA commissioner position has been sent to the White House for final review, including White House adviser Heidi Overton, oncologist Jeffrey Vacirca, and Department of Defense health official Stephen Ferrara, indicating the government's focus on FDA leadership.
- Team-Based Approach: The selection process emphasizes a team-based approach to ensure the new FDA commissioner has a balanced team around them, reflecting a deep reflection on internal management at the FDA to tackle future challenges.
- Former Commissioner Resignation: Former FDA chief Marty Makary resigned in May after a tumultuous tenure, highlighting instability in FDA leadership that could impact regulatory consistency in the pharmaceutical industry.
- Industry Response: The pharmaceutical industry expressed dissatisfaction with Makary's leadership, indicating that the FDA's reputation has been affected, and the new commissioner will need to rebuild trust with the industry to foster collaboration.
See More
Major US Biopharmaceutical Companies Expected to Underperform in H2
- Industry Performance Outlook: Major US biopharmaceutical companies are expected to underperform in the second half of the year, reflecting challenges and uncertainties that may impact investor confidence.
- Market Reaction: Increased investor focus on the biopharmaceutical sector could lead to heightened volatility in related stocks, resulting in downward pressure on share prices in the short term.
- Policy Impact: Uncertainties in industry policy changes and regulatory environments may exacerbate performance fluctuations, affecting long-term strategic planning and investment decisions for companies.
- Intensifying Competition: The rise of emerging biotech firms poses greater competitive pressure on traditional biopharmaceutical companies, necessitating accelerated innovation and R&D investments to maintain market share.
See More
Dividend Investment Opportunities in Pfizer and Bristol Myers Squibb
- Pfizer's Market Performance: Pfizer became the first biopharmaceutical company to surpass $100 billion in annual sales in 2022, but has lagged behind broader equities due to declining COVID-19 product revenues and impending patent cliffs, with a potential transformation in the next five years through its rich pipeline.
- Pipeline Potential: Pfizer's oncology drug PF'4404 is currently in phase 3 trials and is expected to deliver significant clinical wins, while its weight loss pipeline is also progressing steadily; despite poor financial results, some products are expected to drive sales growth.
- Bristol Myers' Recovery: After facing patent cliffs, Bristol Myers' revenue is slowly rebounding, and while it faces more patent expirations, the approval of a new subcutaneous version of Opdivo is expected to contribute to revenue growth in the coming years.
- Collaboration and Innovation: Bristol Myers is partnering with Johnson & Johnson to develop the next-gen anticoagulant Milvexian, which has received FDA Fast Track designation, indicating strong market potential, while also working on bispecific antibodies, with significant progress expected in the coming years.
See More
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- Attractive Dividend Yield: Pfizer's current dividend yield stands at 7%, which, while enticing to investors, may indicate deeper issues as the stock has plummeted 60% from its 2022 peak, reflecting market concerns about future performance.
- Earnings and Payout Ratio: With an estimated earnings per share of $2.99 for 2023 and a dividend payout of $1.72, Pfizer's payout ratio appears healthy at 57%; however, projected cash flow shortfalls in 2025 raise red flags about its ability to sustain dividends.
- Patent Cliff Risks: Pfizer is approaching a patent cliff that could result in a $17 billion revenue loss by 2030, particularly with the expiration of its top-selling drug Eliquis in 2025, posing significant financial challenges ahead.
- Tight Cash Flow: Although Pfizer has $13 billion in cash reserves, the uncertainty surrounding future cash flows and the inability to cover dividends could undermine investor confidence in the sustainability of its dividend payments.
See More
High Dividend Stock Analysis: Verizon Leads
- High Dividend Overview: Among the S&P 500, Verizon, General Mills, Pfizer, and Kraft Heinz all boast dividend yields exceeding 6%, with Pfizer leading at 7.20%, highlighting its attractiveness and potential investment value.
- Payout Ratio Analysis: Pfizer's payout ratio of 56.2% is the lowest, indicating its ability to maintain high dividends while retaining sufficient funds for growth investments, making it more sustainable compared to Verizon's 57.6% and General Mills' 68.7%.
- Dividend Growth History: Verizon has raised its dividend for 21 consecutive years, demonstrating strong financial strength and long-term commitment, while Pfizer has maintained growth for 15 years, providing investor confidence in their dividend stability.
- Investment Return Performance: Despite General Mills' 20% decline year-to-date, Verizon has achieved a 4% annualized return over the past three years, and analysts generally favor its future prospects, with 41% rating it a buy and a target price of $50.50, indicating a 22% upside.
See More
Pfizer Eyes Kailera Acquisition to Expand Weight Loss Portfolio
- Vaccine Dependency Decline: Pfizer has significantly underperformed over the past three years, primarily due to its reliance on COVID-19 vaccines, which have seen declining vaccination rates, putting pressure on sales and impacting overall market performance.
- Acquisition Potential: CEO Albert Bourla highlighted the company's 'very big balance sheet,' indicating its capability to pursue potential acquisitions in the future, despite having made several buyouts in recent years, reflecting a proactive approach to business expansion.
- Weight Loss Market Opportunity: Pfizer bolstered its weight loss portfolio by acquiring Metsera for up to $10 billion, with its lead asset MET-097i now in phase 3 trials, showcasing the company's strategic positioning in the rapidly growing anti-obesity market.
- Attractiveness of Kailera: Kailera Therapeutics' leading candidate ribupatide mimics the actions of two gut hormones, potentially offering a competitive edge in the weight loss market; acquiring Kailera would significantly enhance Pfizer's differentiated pipeline in this sector.
See More
