Pfizer Stock Gains Ground Amid Reports That Its Booster Shot Is Effective
Shares of Pfizer gained additional upside momentum and moved to new all-time high levels after a Reuters report indicated that the third dose of its vaccine was 86% effective in people aged over 60. The study was done by an Israeli healthcare provider.
Yesterday, Pfizer stock and shares of other vaccine makers got a boost after The New York Times reported that U.S. was ready to announce that most Americans would need a booster shot of coronavirus vaccine, so good news are coming day after day for the company.
It is already obvious that developed countries will introduce booster shots, which will increase demand for vaccines and may boost their prices. Not surprisingly, Pfizer shares move higher as traders rush to increase positions in shares of vaccine makers.
What’s Next For Pfizer Stock?
Analysts estimates for Pfizer have moved higher in recent days as it became evident that vaccine makers will be able to sell booster shots, and demand for vaccines will increase.
Currently, analysts expect that Pfizer will report earnings of $4.12 per share in 2021 and $3.59 per share in 2022, so the stock is trading at less than 15 forward P/E which is cheap for the current market environment.
It should be noted that earnings estimates for 2022 have a good chance to move higher in the upcoming weeks as analysts will begin to model stronger demand for vaccines. This demand will be driven by demand for booster shots from developed countries, as well as demand for initial shots from developing countries where vaccination rates remain at low levels.
In this light, Pfizer shares have a good chance to gain additional upside momentum as the spread of the Delta variant of coronavirus remains a major problem, and demand for vaccines will stay at high levels for many months to come.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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