Pfizer (PFE) Stock Stagnates Despite High Yield, Investors Torn
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Value Trap Risk: Pfizer's current P/E ratio stands at 15, dropping to 9 based on future earnings expectations, indicating market concerns about its growth potential, especially with multiple patent cliffs looming that could lead to revenue declines and impact profitability.
- Revenue Outlook Decline: The company anticipates 2023 revenues between $59.5 billion and $62.5 billion, lower than projections for 2025, suggesting it has effectively become a no-growth entity, with significant revenue drop risks ahead.
- Strategic Acquisition Moves: In 2023, Pfizer acquired oncology firm Seagen and GLP-1 treatment developer Metsera, aiming to bolster growth prospects through these strategic investments, despite the challenges posed by patent expirations.
- High Dividend Appeal: With a dividend yield of 6.7%, Pfizer remains attractive to income-seeking investors, providing potential support for its stock price despite its lackluster performance in the market.
Analyst Views on PFE
Wall Street analysts forecast PFE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PFE is 28.56 USD with a low forecast of 24.00 USD and a high forecast of 35.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
5 Buy
11 Hold
0 Sell
Moderate Buy
Current: 25.520
Low
24.00
Averages
28.56
High
35.00
Current: 25.520
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, BeneFIX, Xyntha, Somavert, Ngenla, Hympavzi, Sulperazon, Zavicefta, Octagam and others.
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.
