Pfizer’s 2025 Comeback: What’s Driving Growth

Summary:

• Pfizer targets $4 billion in operational savings by 2024, improving margins and driving long-term profitability.
• PFE returned $7.1 billion via dividends in 9M-24, while reducing debt by $4.4 billion through balance sheet optimization.
• Investing $10.7-$11.7 billion in R&D, focusing on obesity treatments, oncology, and vaccines to address unmet needs.
• Projects 10%-18% EPS growth with stable gross margins in the mid-70% range, despite pricing pressures.
• Normalized P/E ratio of ~17 versus the historical average of 19.75, signaling a 16% upside potential.

Investment Thesis

Since the last coverage on Pfizer (NYSE:PFE) the stock has underperformed the market, delivering a negative return of ~9% against the S&P 500’s +8%. Last time, the focus was on the KP.2-adapted COVID-19 vaccine that received FDA approval, top-line growth, and pipeline potential. The

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.