Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 23 Apr, 25 | PFE | Buy | USD 22.53 | USD 23.85 | USD 24.56 | 6 days | 9.0% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. The company also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Retacrit, Lorbrena, and Braftovi brands. In addition, the company is involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems, as well as disease control and prevention centers. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Myovant Sciences Ltd.; Merck KGaA; Valneva SE; BioNTech SE; and Arvinas, Inc., as well as strategic partnership with CSPC Pharmaceutical Group Limited to launch a local brand of the COVID-19 oral therapeutic treatment Nirmatrelvir/Ritonavir in China, and a collaboration with Carrick Therapeutics Limited. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.
Earnings Growth: The company delivered a 69% increase in adjusted diluted EPS, from $1.84 in 2023 to $3.11 in 2024, demonstrating enhanced profitability
Operational Revenue Growth: Pfizer achieved a 12% operational revenue growth excluding COVID-19 products in full-year 2024, showcasing the strength of its non-COVID portfolio
Lower Demand for Oncology Biosimilars: Pfizer experienced a 35% drop in operational revenues from oncology biosimilars, primarily due to supply constraints and reduced demand in certain markets
Declining COVID-19 Product Sales: Revenues from Comirnaty dropped by 38% in Q4 2024, reflecting reduced global demand for COVID-19 vaccinations
Pfizer faces significant risks from the continued decline in demand for COVID-19-related products and the uncertainty surrounding the regulatory and commercial outlook for its oncology biosimilars
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 22.53 | 20.95 | 23.85 | 24.56 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Revenue Growth and Operational Performance
Pfizer reported a strong performance in 2024, achieving full-year revenues of $63.6 billion, reflecting a 7% year-over-year growth. Excluding contributions from its COVID-19 products, Paxlovid and Comirnaty, the company posted a notable 12% operational growth in revenue. This performance was driven by continued success across its product portfolio, including robust contributions from legacy Seagen products, Vyndaqel, Eliquis, Xtandi, and Nurtec.
Fourth-Quarter Performance
For the fourth quarter of 2024, Pfizer saw revenues of $17.8 billion, marking a 22% increase compared to the same period in the previous year. The operational increase amounted to 21%, mainly attributed to a significant revenue reversal from Paxlovid in Q4 2023, which was a one-time non-cash event. This was partially offset by a decline in Comirnaty sales, which experienced a sharp decrease due to a global drop in demand for COVID-19 vaccinations.
Earnings and Profitability
Reported diluted earnings per share (EPS) for the full year were $1.41, a substantial improvement from $0.37 in 2023. Adjusted diluted EPS for the year came in at $3.11, reflecting a 69% increase from the previous year. In Q4 2024, the reported diluted EPS was $0.07, compared to a loss of $0.60 per share in Q4 2023, with adjusted diluted EPS for the quarter reaching $0.63, up from $0.10 in the prior year.
Cost Management and Savings Program
Pfizer's cost realignment program remained a key focus, contributing to significant reductions in its cost of sales and operating expenses. The company successfully delivered $4 billion in net cost savings in 2024, with expectations to achieve $4.5 billion by the end of 2025. This ongoing cost optimization initiative is expected to continue delivering operational efficiency and profitability improvements in the coming years.
Research and Development Investments
Pfizer continued to invest heavily in research and development (R&D), with $10.8 billion allocated to internal R&D projects in 2024. The company also made strategic business development investments, including the acquisition of Seagen, which contributed to both its pipeline and revenue growth. The company’s R&D spending has increased by 8% in Q4 2024 compared to the same period in 2023, primarily focused on advancing key product candidates.
Capital Allocation and Shareholder Returns
Pfizer’s capital allocation strategy included returning significant capital to shareholders, with $9.5 billion spent on dividends in 2024. However, the company did not repurchase any shares in the year, maintaining a focus on strengthening its balance sheet. Pfizer's remaining share repurchase authorization stands at $3.3 billion, with no anticipated repurchases in 2025, reflecting the company’s ongoing commitment to a balanced capital deployment strategy.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Pfizer, Inc (NYSE: PFE) at the closing market price of USD 22.53, as on April 22, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Drug Manufacturers - General
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PFE Pfizer Inc |
-0.2675 1.14% | 23.25 | 15.52 | 9.60 | 2.31 | 1.61 | 2.56 | 9.54 |
| LLY Eli Lilly and Company |
-15.37 2.06% | 731.64 | 78.14 | 31.95 | 16.34 | 45.83 | 16.65 | 54.36 |
| JNJ Johnson & Johnson |
0.39 0.25% | 154.05 | 29.17 | 14.33 | 3.74 | 5.18 | 3.80 | 15.22 |
| ABBV AbbVie Inc |
-2.78 1.50% | 182.07 | 61.52 | 14.86 | 5.62 | 51.62 | 6.76 | 20.58 |
| MRK Merck & Company Inc |
-0.55 0.71% | 77.42 | 59.83 | 12.33 | 4.50 | 6.47 | 4.94 | 23.79 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is April 22,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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