Pfizer (NYSE: PFE) stock inclined about 2% in intraday trading Thursday after BMO raised its price target.
BMO Capital Markets has revised its outlook on Pfizer (PFE) stock, increasing the price target from $33 to $36 while maintaining an Outperform rating. This adjustment follows insightful discussions with Pfizer’s CFO David Denton and insights gleaned from the company’s recent earnings call.
Conversations with Pfizer management highlighted the company’s strategic focus on oncology, RSV, and hematology, and a cautiously optimistic outlook on recent and upcoming product launches.
Management also addressed the gradual normalization of COVID-19’s impact on the business, signaling a potential turning point for investors. While challenges persist, Pfizer’s proactive approach aims to address them while capitalizing on opportunities. Analysts view Pfizer’s current price-to-earnings ratio of 12 times as undervalued relative to its post-pandemic prospects and recent strategic acquisitions, including the Seagen deal.
Pfizer’s commitment to effective profit and loss management, with assurances of dividend security and anticipated cost savings of about $4 billion for fiscal year 2024, further bolsters confidence. The company’s conservative guidance approach, which allows for potential outperformance, adds to its appeal.
The analyst’s statement underscores the discrepancy between Pfizer’s valuation and its strategic positioning post-pandemic, as well as its disciplined financial management and strategic acquisitions.
The upward adjustment of the price target to $36 reflects BMO Capital Markets’ confidence in Pfizer’s trajectory and performance. The endorsement of an Outperform rating indicates the analyst’s belief that Pfizer’s stock may outperform the market average based on its current outlook and strategic direction.
Pfizer (NYSE: PFE) Stock Price Action
PFE stock rose 1.91% to close at $27.70 on Thursday. Its value has increased by 9.66% this week. Trading activity has witnessed 69,649,008 (69.64 million) shares changing hands, well above the average daily volume of 41.48 million.
