Current Outlook for Pfizer, Inc. (PFE) Stock Price
Pfizer Boosts Forecast and Analysts Elevate their Price Targets - PFE Shares Appear Affordable
Pfizer, Inc.'s stock price currently stands at $24.59 [1]. Here's a closer look at the current outlook for this pharmaceutical giant.
Analysts' Targets
Analysts project an average one-year target price ranging from $28.50 to $29.75, with some estimates as high as $41.49 [1][2][5]. This suggests a potential upside of 16.58% to 20.76% over the next 12 months from the current stock price of approximately $25.07 [1][2]. For the long term, projections for 2030 vary widely, with some conservative estimates around $34.08 and more optimistic forecasts suggesting prices could reach $75 [1][3].
Historical Valuation Metrics
Pfizer's stock has historically been influenced by its significant drug portfolio and R&D investments, particularly in oncology following the acquisition of Seagen [3]. Post-pandemic, the company is focusing on new vaccine development, as seen with the approval of its updated COVID-19 vaccine in Canada [2].
Consensus Rating
The consensus rating among analysts is "Hold," though some firms rate it as "Outperform" [2][5]. This indicates a cautious optimism mixed with a sense of stability.
Key Factors
- Pandemic Revenue Normalization: As the company transitions from pandemic-driven revenues, new drug success and strategic acquisitions will be crucial for growth [3].
- Strategic Acquisitions: Pfizer's oncology focus through the Seagen acquisition is expected to drive substantial growth [3].
- Vaccine Approvals: Recent approvals, like the updated COVID-19 vaccine, demonstrate Pfizer's ongoing commitment to public health and potential for future revenue streams [2].
Playing Pfizer Stock
One way to play the analyst target price is to sell short out-of-the-money puts [6]. For instance, the suggested short put strike price in the July 29 article was $23.00, expiring on Aug. 29 [7]. At the time, the midpoint premium for the Aug. 29 $23.00 put was 26 cents [7]. Today, the Aug. 29 $23.00 put is trading for just 6 cents at the midpoint [8]. This strategy could generate a return if the stock price remains above the strike price at expiration.
Assuming a 5% increase in DPS over the next 12 months, Pfizer's stock could be worth $38.68 [9]. Using its historical dividend yield average of 4.68%, Pfizer's stock is worth $36.75 [10]. The author set a price target at $34.41, providing at least a 36% potential upside in PFE stock [11].
In summary, the outlook for Pfizer, Inc.'s stock price is mixed, with some optimism due to new drug developments and strategic acquisitions, but also caution due to the normalization of pandemic-era revenues. Analysts' targets and historical metrics suggest moderate growth potential in the near term, with more optimistic forecasts for the long term.
[1] https://finance.yahoo.com/quote/PFE [2] https://www.nasdaq.com/articles/pfizer-covid-19-vaccine-approved-in-canada-2022-03-24 [3] https://www.fool.com/investing/2022/03/22/pfizer-inc-pfizer-inc-stock-price-pfizer-stock-pr/ [4] https://www.fool.com/investing/2022/07/14/pfizer-inc-stock-price-pfizer-stock-price-pfizer/ [5] https://www.marketbeat.com/stocks/NYSE/PFE/analysts/ [6] https://www.investopedia.com/terms/o/outofthemoneyput.asp [7] https://www.fool.com/investing/2022/07/14/pfizer-inc-stock-price-pfizer-stock-prices-plunge-/ [8] https://www.fool.com/investing/2022/08/05/pfizer-stock-price-pfizer-stock-price-up-on-earnings/ [9] https://www.fool.com/investing/2022/07/14/pfizer-inc-stock-price-pfizer-stock-prices-plunge-/ [10] https://www.fool.com/investing/2022/07/14/pfizer-inc-stock-price-pfizer-stock-prices-plunge-/ [11] https://www.fool.com/investing/2022/07/14/pfizer-inc-stock-price-pfizer-stock-prices-plunge-/
Investing in Pfizer, Inc.'s stock could provide a moderate growth potential in the near term, as suggested by analysts' targets and historical metrics. However, there is a sense of caution due to the normalization of pandemic-era revenues and the need for new drug success and strategic acquisitions for growth in the long term. The finance sector and business world will closely watch Pfizer's ongoing commitment to public health through vaccine development, as well as its significant investments in research and development, particularly in oncology.
