Citi lifts Pfizer target to $30 on updated forecasts

Published 13/08/2024, 23:20
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On Tuesday, Citi updated its stance on Pfizer Inc. (NYSE:PFE), raising the pharmaceutical giant's price target to $30.00 from the previous $28.00, while keeping a Neutral rating on the stock. The adjustment comes after the firm reviewed Pfizer's second-quarter results and incorporated the latest company guidance, sales data, prescription trends, and currency fluctuations into their forecast model.

The analyst from Citi noted a significant increase in the non-GAAP EPS estimate for the year 2024, which saw a rise of 19% due to the latest company guidance. The changes to their projections for the upcoming forecast period vary, with some estimates increasing by up to 10%, while others are reduced by as much as 13%.

Pfizer's recent quarter performance and the updated guidance have played a crucial role in the revised estimates. The company's financial health and market performance are monitored closely by investors, and such adjustments by financial institutions can influence market perceptions.

In other recent news, Pfizer Inc. announced promising results from a late-stage study of its RSV vaccine, Abrysvo, demonstrating a strong immune response in adults with compromised immune systems.

The study found that a single 120 microgram dose of Abrysvo effectively produced neutralizing antibodies against both RSV-A and RSV-B subtypes. Pfizer plans to present these findings to regulatory authorities for consideration.

In parallel, Pfizer reported a significant year-over-year revenue increase for the second quarter of 2024, the first such growth since the final quarter of 2022. The pharmaceutical giant served over 192 million patients with its medicines and vaccines in the first half of the year.

Pfizer has raised its full-year revenue and earnings guidance for 2024, indicating a positive outlook for its future performance.

Goldman Sachs has responded positively to these developments, raising its price target for Pfizer stock and maintaining a Buy rating. The firm's decision is based on Pfizer's robust second-quarter financial performance, which surpassed analyst expectations in terms of revenue and earnings.

InvestingPro Insights

As investors consider Citi's updated stance on Pfizer Inc. (NYSE:PFE), incorporating real-time data and insights from InvestingPro can provide a more comprehensive view of the company's financial picture. Pfizer's market capitalization currently stands at approximately $163.65 billion, reflecting its significant presence in the pharmaceutical industry. Despite a notable dip in revenue growth over the last twelve months, amounting to a 29.66% decrease, the company maintains a strong gross profit margin of 60.16%, underscoring its ability to retain earnings above the cost of goods sold.

InvestingPro Tips highlight Pfizer's commitment to shareholder returns, having raised its dividend for 13 consecutive years and maintained dividend payments for 54 consecutive years. This consistency is echoed in the current dividend yield of 5.91%, which is attractive to income-focused investors. Additionally, analysts have shown optimism towards Pfizer's profitability, with net income expected to grow this year and 12 analysts revising their earnings estimates upwards for the upcoming period.

For those seeking further insights, InvestingPro offers additional tips on Pfizer, including analysis on the company's stock volatility, industry standing, and valuation multiples. With Pfizer's next earnings date on the horizon, these insights can be instrumental for investors as they assess the company's future in a dynamic market environment. For a deeper dive into Pfizer's performance and potential, more InvestingPro Tips are available at: https://www.investing.com/pro/PFE.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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