Pfizer (NYSE:PFE) Stock Jumps 1.6% Following Analyst Upgrade

Key Points

• Pfizer shares rose 1.6% after JPMorgan raised its price target from $28 to $30, though it maintained a neutral rating. Analysts overall have a consensus “Hold” rating and an average target price of $28.72.
• The FDA expanded approval for Pfizer’s TUKYSA regimen as a chemotherapy-free frontline maintenance treatment for HER2-positive metastatic breast cancer, potentially broadening the drug’s market and supporting the company’s oncology strategy.
• Pfizer offers a 6.1% dividend yield, but its payout ratio above 226% and planned Italian plant closure with roughly 330 job cuts highlight concerns about dividend sustainability, earnings pressure and cost reductions.

Shares of Pfizer Inc. (NYSE:PFE - Get Free Report) traded up 1.6% during mid-day trading on Friday after JPMorgan Chase & Co. raised their price target on the stock from $28.00 to $30.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Pfizer traded as high as $28.29 and last traded at $28.2710. 22,597,865 shares changed hands during mid-day trading, a decline of 44% from the average session volume of 40,465,797 shares. The stock had previously closed at $27.82.

PFE has been the subject of several other research reports. Cantor Fitzgerald raised their price target on Pfizer from $27.00 to $28.00 and gave the company a "neutral" rating in a report on Thursday. BMO Capital Markets dropped their price objective on shares of Pfizer from $34.00 to $30.00 and set an "outperform" rating on the stock in a research report on Monday, July 13th. Guggenheim cut their target price on shares of Pfizer from $35.00 to $31.00 and set a "buy" rating for the company in a research note on Friday, August 7th. HSBC lifted their target price on shares of Pfizer from $28.00 to $30.00 and gave the stock a "hold" rating in a report on Thursday, September 10th. Finally, Bank of America cut their price objective on shares of Pfizer from $27.00 to $26.00 and set a "neutral" rating for the company in a research report on Friday, July 10th. Five research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $28.72.

Key Headlines Impacting Pfizer

Here are the key news stories impacting Pfizer this week:

• Positive Sentiment: The FDA approved Pfizer’s TUKYSA (tucatinib) combination with trastuzumab and pertuzumab as a chemotherapy-free frontline maintenance treatment for patients with HER2-positive metastatic breast cancer. The expanded label moves TUKYSA into an earlier stage of care, potentially broadening its addressable market and supporting Pfizer’s oncology-growth strategy. Pfizer’s TUKYSA Regimen Receives FDA Approval
• Positive Sentiment: Jefferies initiated or reiterated a Buy rating on Pfizer, while Cantor Fitzgerald raised its price target to $28, providing additional support for the stock’s valuation narrative. A separate analysis also upgraded Pfizer to a cautious bullish view. Pfizer Receives a Buy from Jefferies
• Positive Sentiment: Investors continue to view Pfizer as a potential value play because of its low forward earnings multiple, substantial cash-generation capacity and dividend yield. The company’s oncology pipeline, including TUKYSA and the advancing Phase 3 tilrekimig asthma program, may help offset pressure from slower legacy-product growth. Pfizer’s Tilrekimig Phase 3 Trial
• Neutral Sentiment: Pfizer’s next earnings report is a key catalyst. Analysts expect oncology sales, biosimilars, pipeline progress and the company’s ability to deliver another earnings beat to determine whether the valuation discount is justified.
• Negative Sentiment: Pfizer’s dividend yield above 6% is drawing scrutiny because it may reflect a depressed share price and investor concerns about earnings, cash flow, debt and payout sustainability. Commentators warn that a frozen dividend and prior write-downs make the high yield less reassuring than it appears. Pfizer’s Dividend Yield Is Above 6%
• Negative Sentiment: Pfizer plans to close a penicillin unit in Italy and eliminate approximately 330 jobs. The restructuring could improve efficiency, but it also highlights ongoing pressure to reduce costs amid sluggish revenue growth, thin margins and concerns about returns on equity.

Hedge Funds Weigh In On Pfizer

Hedge funds and other institutional investors have recently modified their holdings of the business. Retirement Wealth Solutions LLC grew its position in Pfizer by 144.6% in the third quarter. Retirement Wealth Solutions LLC now owns 861 shares of the biopharmaceutical company's stock valued at $25,000 after acquiring an additional 509 shares during the last quarter. Evolution Wealth Management Inc. lifted its holdings in shares of Pfizer by 132.2% in the first quarter. Evolution Wealth Management Inc. now owns 994 shares of the biopharmaceutical company's stock worth $28,000 after acquiring an additional 566 shares during the last quarter. Keb Asset Management LLC acquired a new stake in shares of Pfizer in the 2nd quarter valued at approximately $26,000. Field & Main Bank bought a new stake in shares of Pfizer during the 2nd quarter valued at approximately $27,000. Finally, Global Trust Asset Management LLC grew its holdings in shares of Pfizer by 126.7% during the 1st quarter. Global Trust Asset Management LLC now owns 1,163 shares of the biopharmaceutical company's stock valued at $33,000 after purchasing an additional 650 shares during the last quarter. Institutional investors own 68.36% of the company's stock.

Pfizer Stock Performance

The stock's 50-day moving average is $27.62 and its 200-day moving average is $26.49. The firm has a market capitalization of $161.14 billion, a price-to-earnings ratio of 37.20, a PEG ratio of 1.88 and a beta of 0.32. The company has a current ratio of 1.27, a quick ratio of 0.96 and a debt-to-equity ratio of 0.71.

Pfizer (NYSE:PFE - Get Free Report) last issued its earnings results on Tuesday, August 4th. The biopharmaceutical company reported $0.77 earnings per share for the quarter, beating analysts' consensus estimates of $0.68 by $0.09. The firm had revenue of $15.03 billion for the quarter, compared to analyst estimates of $14.40 billion. Pfizer had a net margin of 6.80% and a return on equity of 19.63%. The company's quarterly revenue was up 2.6% on a year-over-year basis. During the same quarter last year, the business posted $0.78 earnings per share. Pfizer has set its FY 2026 guidance at 2.800-3.000 EPS. On average, analysts predict that Pfizer Inc. will post 2.98 EPS for the current fiscal year.

Pfizer Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 7th. Investors of record on Friday, November 6th will be given a dividend of $0.43 per share. The ex-dividend date is Friday, November 6th. This represents a $1.72 dividend on an annualized basis and a yield of 6.1%. Pfizer's payout ratio is currently 226.32%.

About Pfizer

Pfizer Inc NYSE: PFE is a global biopharmaceutical company that discovers, develops, manufactures and commercializes prescription medicines and vaccines. Its research and commercial activities focus on areas including oncology, inflammation and immunology, internal medicine, hospital care and vaccines.

The company's portfolio includes widely used products such as the Prevnar family of pneumococcal vaccines, Ibrance for certain breast cancers, Eliquis for preventing blood clots, Xeljanz for inflammatory conditions, and Vyndaqel for transthyretin amyloidosis.

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