Bank of America Securities Maintains Buy on Pfizer Inc (PFE)

Core Insights - Pfizer Inc. is currently considered one of the best and cheap stocks to buy, following a deal announced with President Trump to lower Medicaid drug prices in the US [1] - The company will match its Medicaid prices to those in other developed countries in exchange for tariff relief on imports [1][2] - Pfizer will invest $70 billion in domestic manufacturing and research, receiving a 3-year grace period from tariffs for products made in the US [2] Pricing Strategy - Pfizer will offer its most favored nation prices on all new drugs launched in the US, with other drug makers expected to follow suit [2] - The new Medicaid prices will be effective in 2026 and will be based on the lowest prices paid in eight other developed economies [2] Market Reaction - Following the announcement, Bank of America Securities reiterated a Buy rating on Pfizer with a price target of $28 [3]