The blue-chip pharmaceutical giant Pfizer is expected to report earnings per share of $1.08 in the third quarter, which represents year-over-year growth of about 50% from $0.72 per share seen in the same period a year ago.
The pharmaceutical company, which ranked 64th on the 2020 Fortune 500 list of the largest U.S. corporations by total revenue, will report revenue of $22.7 billion, up nearly 90% from the same period a year ago.
Pfizer’s revenue and earnings have both reached new highs due to strong sales of its coronavirus vaccine. Orders of coronavirus vaccines have continued to flood-in this year, which has led the company to upgrade its guidance multiple times.
According to the company’s latest quarterly update back in July, it expects revenue of $78.0 billion to $80.0 billion with adjusted earnings per share of $3.95 to $4.05. That would be a significant improvement from the $41.9 billion revenue and $2.22 EPS the company generated in 2020.
The stock has risen on vaccine developments for over a year now, but most investors now wonder if vaccine stocks are still worth investing.
“We’re reaching a juncture where the markets are looking past the Covid-19 pandemic. Vaccine revenue is likely to see little growth or no growth over 2022, per consensus revenue estimates for the likes of Moderna and Pfizer. We think investors will need to evaluate vaccine stocks based on the potential of their future pipelines and other drugs,” noted analysts at TREFIS.
Pfizer Stock Price Forecast
Seven analysts who offered stock ratings for Pfizer in the last three months forecast the average price in 12 months of $46.79 with a high forecast of $61.00 and a low forecast of $40.50.
The average price target represents a 7.22% change from the last price of $43.64. From those seven analysts, one rated “Buy”, six rated “Hold”, while none rate “Sell”, according to Tipranks.
Morgan Stanley gave the base target price of $48 with a high of $56 under a bull scenario and $37 under the worst-case scenario. The firm gave an “Equal-weight” rating on the pharmaceutical company’s stock.
Several other analysts have also updated their stock outlook. Citigroup raised the price target to $46 from $43. Independent Research lifted the target price to $51 from $49.
Analyst Comments
“We project solid growth prospects, and the company’s COVID vaccine offers significant accretion potential in 2021 and 2022. But we expect COVID vaccine sales and profits to decline significantly in 2023+,” noted Matthew Harrison, equity analyst at Morgan Stanley.
“Pfizer’s dividend is expected to continue to increase at current level despite Viatris’ dividend payment. Lack of clarity in near to mid-term pipeline potential. Pipeline execution and M&A will be key to investor perception, given late-decade patent expiration exposure.”
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This article was originally posted on FX Empire
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