Street Calls of the Week
Investing.com - Guggenheim has maintained its Buy rating and $33.00 price target on Pfizer (NYSE:PFE) ahead of the pharmaceutical giant’s third-quarter 2025 earnings report scheduled for November 4. Currently trading at $25.24, InvestingPro analysis suggests the stock is undervalued, with a P/E ratio of 13.4x and an attractive dividend yield of 6.8%.
The research firm forecasts Pfizer’s Q3 2025 revenues at approximately $15.7 billion, below the Visible Alpha Consensus estimate of $17.2 billion. Guggenheim projects earnings per share of $0.58, compared to the consensus expectation of $0.72. The company maintains strong fundamentals with a gross profit margin of 73.8% and trailing twelve-month revenue of $63.8 billion.
For the full fiscal year 2025, Guggenheim has adjusted its revenue estimate to $62.2 billion and EPS to $3.04, slightly below consensus figures of $63.3 billion and $3.10 respectively. These projections remain within Pfizer’s guidance range of $61.0-$64.0 billion in sales and $2.90-$3.10 in EPS.
The firm attributes part of the earnings gap to a $1.35 billion IPR&D charge related to Pfizer’s 3SBio partnership, which it believes is not fully reflected in other analysts’ estimates. Guggenheim also noted that approximately $1.3 billion of COVID revenues have been shifted from Q3 to Q4 in its model.
Despite increasing competitive pressures in specialty areas, particularly for Prevnar from Merck’s (NYSE:MRK) Capvaxive and for Vyndamax from new market entrants, Guggenheim remains constructive on Pfizer’s long-term prospects, citing the recent Trump administration agreement as easing a key policy overhang and providing operational clarity. With a beta of 0.46 indicating lower volatility than the market, InvestingPro subscribers can access 10+ additional exclusive insights and a comprehensive Pro Research Report, providing deeper analysis of Pfizer’s market position and growth potential.
In other recent news, Pfizer has declared a fourth-quarter 2025 dividend of $0.43 per share, payable on December 1, 2025, to shareholders of record as of November 7, 2025. This announcement comes alongside Pfizer’s agreement with the Trump administration on drug pricing, which has been described by BMO Capital as a "meaningful win" for both the company and patients, specifically involving Medicaid program discounts. BMO Capital has reiterated its Outperform rating for Pfizer, maintaining a $30.00 price target. Similarly, TD Cowen has reiterated a Hold rating with the same price target, noting the Most Favored Nation agreement as an "important positive" for the pharmaceutical sector.
Additionally, Swiss pharmaceutical companies are expected to follow Pfizer’s lead in negotiating price deals with the U.S. government, as indicated by Scienceindustries, a Swiss industry association. The association anticipates further announcements of similar deals from global pharmaceutical firms. These developments highlight significant movements in the pharmaceutical industry regarding pricing strategies and government agreements.
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