Pfizer Could Soar to $36 Per Share, According to a Wall Street Analyst. Is It a Buy at Around $26?

Core Viewpoint - Pfizer's stock has recently increased due to a raised dividend payout and positive forward-looking guidance from management, which confirmed its annual revenue and earnings outlook for the upcoming year [1] Group 1: Financial Performance and Projections - Pfizer's stock has declined approximately 57% from its peak in 2021, primarily due to unpredictable sales of its COVID-19 products, with combined sales expected to reach $10.5 billion in 2023, down from $56.7 billion in 2022 [4] - Management anticipates adjusted earnings per share to be between $2.80 and $3.00 in 2025, which exceeds the current annual dividend obligation of $1.72 [7] - Total revenue is projected to grow by 5% in 2025, supported by new revenue sources from recently approved drugs [9] Group 2: Dividend and Investment Potential - Pfizer has raised its quarterly dividend payout for the 16th consecutive year, offering a yield of 6.5% at its current stock price [6] - The company is expected to continue raising dividends despite the loss of Oxbryta, as new blockbuster drugs are anticipated to generate sufficient sales [8] - Pfizer shares are currently trading at 9.1 times the midpoint of management's adjusted earnings estimate for 2025, indicating a potentially attractive valuation for long-term investors [13] Group 3: Operational Efficiency - Pfizer has reduced annual operating expenses by $4 billion in 2024 and plans to cut an additional $500 million next year, which, combined with rising sales, presents a favorable opportunity for new investors [11][12]