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On Tuesday, Jefferies analyst Akash Tewari increased the price target for Pfizer (NYSE:PFE) shares from $33.00 to $34.00, while reiterating a Buy rating on the stock. Currently trading at $25.72, near its 52-week low, InvestingPro analysis suggests the pharmaceutical giant is undervalued. The adjustment follows the release of Pfizer’s abstract on mevrometostat (EZH2i) from the American Society of Clinical Oncology Genitourinary (ASCO GU) symposium.
The data presented showed that the median radiographic progression-free survival (rPFS) when combining mevrometostat with Xtandi was 14.3 months, compared to just 6.2 months for the control group that received Xtandi alone. This result, with a hazard ratio (HR) of 0.51, suggests a competitive edge against other treatments which typically show an rPFS ranging from 4 to 12 months.
The combination therapy’s safety profile was also addressed, indicating that it was generally comparable to or slightly higher in Grade 3 or above treatment-emergent adverse events (TEAEs) compared to monotherapy. Tewari noted that this data could have positive implications for Pfizer’s ongoing Phase 3 trials in both post-abiraterone and first-line metastatic castration-resistant prostate cancer (mCRPC) settings. With a robust financial health score rated as GOOD by InvestingPro and substantial revenue of $63.63 billion in the last twelve months, Pfizer maintains a strong position to advance its clinical programs.
In terms of financial projections, Jefferies has modeled a risk-adjusted peak sales estimate for mevrometostat at approximately $2.1 billion, with $1.1 billion expected from its use post-abiraterone and another $1 billion from its application in first-line mCRPC treatment.
The updated price target reflects Jefferies’ confidence in the potential market performance of mevrometostat, as well as its anticipated role in Pfizer’s oncology portfolio. With a notable dividend yield of 6.65% and a market capitalization of $146.1 billion, Pfizer remains a significant player in the pharmaceutical sector. Pfizer’s stock price movement will continue to be monitored closely by investors as the company progresses through its clinical trials and seeks to solidify its position in the prostate cancer treatment market. For deeper insights into Pfizer’s valuation and financial metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Pfizer has seen noteworthy developments. Goldman Sachs reduced its price target for Pfizer from $33 to $32, maintaining a "Buy" rating, following the company’s recent earnings report. The report was described as uneventful, despite a slight outperformance due to higher-than-expected COVID-19 complex revenues. Pfizer’s plan to allocate approximately $10-15 billion towards business development activities in 2025 was also highlighted.
Pfizer’s Phase 3 BREAKWATER study of BRAFTOVI showed significant improvement in progression-free survival and overall survival for patients with metastatic colorectal cancer. The company aims to discuss these findings with the FDA to convert the drug’s accelerated approval to full approval.
Activist investor Starboard Value LP refrained from nominating directors to Pfizer’s board before the January deadline. This development eases some tension for Pfizer’s CEO, Albert Bourla, but Starboard may propose changes to Pfizer’s board in 2026 if no agreement is reached beforehand.
Pfizer is also planning to sell approximately 700 million shares, a 7.7% stake in Haleon Plc, aiming to raise about £2.6 billion ($3.1 billion) through an accelerated placement with investors, subject to market conditions and investor demand. These are the latest developments in Pfizer’s operations.
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