Wall Street closes at a record for the first time since end of January
Investing.com - Guggenheim reiterated a Buy rating and $36.00 price target on Pfizer (NYSE:PFE) as the firm updated its financial model ahead of the company’s first-quarter earnings release scheduled for May 5.
The firm forecasts first-quarter 2026 revenues of approximately $13.8 billion compared to consensus estimates of $13.9 billion, and earnings per share of $0.76 versus consensus of $0.72. Full-year 2026 revenue and EPS estimates stand at $61.3 billion and $3.00, respectively, compared to consensus of $61.2 billion and $2.96, and management guidance of $59.5 billion to $62.5 billion in sales and $2.80 to $3.00 in EPS.
The most significant change in Guggenheim’s model is a meaningful upward revision to Eliquis, where the firm believes the IRA net pricing dynamics are more favorable than consensus expects. This is partially offset by higher operating expenses, most notably research and development, to account for Pfizer’s expanding pipeline investment.
Guggenheim expects investor focus to center on upcoming pipeline readouts, including sigvotatug vedotin in the first half of 2026, obesity data at ADA in June, and mevrometostat in the second half. The firm believes these readouts combined could help drive growth for the company after it navigates the 2026-2028 period where it faces significant patent expirations.
The $36 DCF-based price target is supported by low expectations for the pipeline and an attractive 6%+ dividend yield at current levels. With shares currently trading at $26.92, the target implies a potential upside of 34%. InvestingPro data shows the stock offers a robust 6.4% dividend yield, and the company has maintained dividend payments for 56 consecutive years—a testament to its financial stability. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, aligning with Guggenheim’s bullish stance. Investors seeking deeper insights can access Pfizer’s comprehensive Pro Research Report, one of 1,400+ available on InvestingPro, which includes 10 additional ProTips and extensive financial metrics.
In other recent news, Pfizer Inc. reported a significant development with its investigational Lyme disease vaccine candidate, PF-07307405, which demonstrated a 73.2% efficacy in a Phase 3 clinical trial. The trial, conducted in partnership with Valneva SE, showed promising results in preventing confirmed Lyme disease cases in individuals aged five years and older. Additionally, Pfizer, GSK, and Shionogi completed changes to the ownership structure of ViiV Healthcare, resulting in Pfizer’s exit from its investment and receiving $1.875 billion. GSK maintained its majority interest, while Shionogi increased its stake to 21.7%.
Further, a Brussels court ruled that Poland and Romania must honor their COVID vaccine purchase agreements with Pfizer, amounting to $2.2 billion. Meanwhile, Guggenheim raised its price target for Pfizer to $36, maintaining a Buy rating due to expectations around the MEVPRO-1 Phase 3 trial for metastatic castration-resistant prostate cancer. Conversely, RBC Capital reiterated an Underperform rating with a $25 price target, citing mixed expectations for key products like Prevnar, Paxlovid, and Vyndamax. Leerink Partners maintained a Market Perform rating following the court decision on vaccine contracts. These developments reflect a dynamic period for Pfizer, with varying analyst perspectives on its future performance.
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