Pfizer Stock Poised for 20% Upside
Pfizer's stock has been on a roll, rising 16.6% in 2026 and delivering ten consecutive earnings beats. Yet, investors remain divided on whether the company is poised for a breakout or has already hit a ceiling. The answer may hinge on a pivotal deal in the obesity drug sector. Analysts at 24/7 Wall St. set a price target of $33.18 for Pfizer, suggesting a 20.2% upside from its current $27.60 share price.
The company's second-quarter revenue hit $15 billion, with adjusted EPS of 77 cents exceeding expectations. Excluding COVID-related products, revenue grew 5% operationally. Pfizer also raised its 2026 revenue forecast by $500 million, even after reducing COVID expectations to about $4 billion. The FDA expanded the use of Padcev for muscle-invasive bladder cancer, showing a 35% reduction in death risk.
Bulls are optimistic, eyeing a potential $37 share price if obesity and oncology pipelines deliver. The Metsera deal positions Pfizer to compete in the $150 billion obesity market, while oncology trials show promising results. Cost-cutting programs aim to save $9.7 billion through 2029. However, analysts caution about generic competition, pricing discounts, and regulatory risks that could cap gains near $29.
Pfizer trades at a 10x forward earnings multiple, offering a 6.03% dividend yield. While below Merck's 15x multiple, it remains attractive compared to Bristol Myers Squibb's 9x. Projections suggest Pfizer could reach $44.30 by 2030 if it returns to growth, but outcomes depend on obesity trial results and drug pricing policies.