Pfizer: Should Investors Wait for COVID-19 Vaccine?

Pfizer is partnering with BioNTech to develop a COVID-19 vaccine which is now in phase 3 clinical trial. Pfizer’s vaccine is one of the frontrunners in the race to develop the virus vaccine.

Non-Coronavirus Catalysts?

The company plans to make 100 million doses by the end of this year if everything goes its way. But Pfizer looks strong even without the coronavirus vaccine and also in the post-coronavirus scenario. The company’s biopharma business is showing strong performance due to growth products like anticoagulant Eliquis and cancer drug Ibrance. Its biopharma business now accounts for over 80% of total revenue. In the second quarter, biopharma revenue jumped 4%, and the company upped its 2020 outlook.

Pfizer Rotterdam

What Do Analysts Think of Pfizer?

After Pfizer’s earnings, Cantor Fitzgerald’s analyst Louise Chen maintained an Overweight rating and a $53 price target. Chen said in a note that the company could meet or exceed its five-year CAGR target of at least 6% for revenue. The analyst also thinks that upward earnings revisions and multiple expansion could help move Pfizer shares higher.

Chen has a price target of $53 for the stock with an Overweight rating. The price target represents a significant upside to the current trading price.

BofA’s Geoff Meacham said in a note that Pfizer’s core products, including Prevnar, Ibrance, Eliquis and Vyndaqel remain strong. However, the analyst said he is skeptical of the company’s ability to deliver blockbusters in the future through 2026. Meacham has a $38 price target for Pfizer.