Pfizer: I’m Short-Term Skeptical, Long-Term Positive Post 2025 Guidance Call

Summary:

• Pfizer Inc.’s share price has declined significantly in each of the past three years, despite high COVID-related revenues, with concerns over debt and M&A spending impacting its financial stability.
• Management discussed 2025 guidance on a call yesterday, showing modest revenue growth expectations, with a focus on maintaining COVID-19 product revenues and a strong dividend yield of over 6%.
• Pfizer’s future growth hinges on new drug launches, particularly in oncology, but there are risks if COVID revenues decline or pipeline approvals falter.
• Despite current challenges, I see potential for significant upside, and I am upgrading my rating to “Buy” as we head into 2025.

Investment Overview

Just over one year ago, I shared a note with Seeking Alpha readers on Pfizer Inc. (NYSE:PFE), the beleaguered New York based Big Pharma. Its revenues per annum broke $100bn in 2022

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PFE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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