What To Expect From PFE Stock In 2025?

Core Viewpoint - Pfizer's stock underperformed in 2024, losing about 5%, while the S&P 500 gained 23%, attributed to declining Covid-19 vaccine sales, falling profitability, and increased competition [1][3][5] Group 1: 2024 Performance Overview - Pfizer's sales excluding Covid-19 products grew in double digits over the last couple of quarters, with Vyndaqel sales up 66% year-over-year to $3.9 billion and Eliquis sales up 8$5.5 billion [3] - Total revenue for Pfizer reached $59.4 billion in the last twelve months, slightly above$58.5 billion in 2023, aided by the acquisition of Seagen [3] - Pfizer aims to achieve $4 billion in cost savings for 2024, with total debt declining from$71 billion in 2023 to $67 billion, while cash decreased from$13 billion to $10 billion [3] Group 2: Stock Performance and Valuation - PFE stock declined from$28 at the beginning of 2024 to around $27 by year-end, with a volatile performance over the last four years [5] - The stock is currently undervalued, estimated at$36 per share, reflecting a potential upside of around 40% from current levels, trading at 2.5x trailing revenues compared to an average P/S ratio of 3.1x over the last five years [6][9] Group 3: Outlook for 2025 - 2025 may see slight improvements in sales and earnings, but the blockbuster drug Xeljanz is set to lose patent protection, which could impact revenue [7] - Continued market share gains are expected for Vyndaqel, Abrysvo, and Eliquis, while Xtandi and Prevnar may face increased competition [8] - The updated Covid-19 vaccine Comirnaty has been approved, and its performance will be monitored in 2025 [8]