Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 1 Oct, 25 | PFE | Buy | USD 27.12 | USD 28.5 | USD 30.5 | 96 days | Closed |
6.23%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. The company also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Retacrit, Lorbrena, and Braftovi brands. In addition, the company is involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems, as well as disease control and prevention centers. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Myovant Sciences Ltd.; Merck KGaA; Valneva SE; BioNTech SE; and Arvinas, Inc., as well as strategic partnership with CSPC Pharmaceutical Group Limited to launch a local brand of the COVID-19 oral therapeutic treatment Nirmatrelvir/Ritonavir in China, and a collaboration with Carrick Therapeutics Limited. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.
Adjusted Income: Adjusted net income in Q2 FY25 rose to $4.4 billion, a 30% increase compared to $3.4 billion in Q2 FY24
Revenue Growth: In Q2 FY25, Pfizer reported revenues of $14.7 billion, reflecting a 10% year-over-year increase from $13.3 billion in Q2 FY24
Ibrance Decline: In Q2 FY25, Ibrance revenues declined by 8% operationally compared to Q2 FY24, due to IRA-related price reductions and generic competition.
IRA Impact on Pricing: In Q2 FY25, several products such as Eliquis and Ibrance faced lower U.S. net prices from higher manufacturer discounts under the Inflation Reduction Act, unlike in Q2 FY24, when this impact was less significant
Pfizer faces significant investment risk from ongoing pricing pressures under the Inflation Reduction Act (IRA) and rising global generic competition, which could erode revenues from key blockbuster drugs
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 27.12 | 23.5 | 28.5 | 30.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Financial Performance in Q2 2025: Pfizer Inc. delivered a solid second quarter of 2025, reporting revenues of USD 14.7 billion, a 10% year-over-year operational increase from USD 13.3 billion in the prior-year period. Reported diluted EPS rose sharply to USD 0.51 from USD 0.01 in Q2 2024, while adjusted diluted EPS increased 30% to USD 0.78 compared to USD 0.60 a year earlier. These results underscored the company’s consistent focus on execution, commercial performance, and disciplined cost management.
Executive Confidence and Strategic Outlook: Chairman and CEO Dr. Albert Bourla emphasized Pfizer’s continued progress in advancing its research pipeline, expanding margins, and creating long-term value for both patients and shareholders. CFO David Denton reiterated this optimism, noting the company’s robust revenue and EPS performance as the basis for raising the 2025 adjusted EPS guidance, reflecting confidence in Pfizer’s ability to execute its strategic objectives.
Guidance Reaffirmed and Upgraded: For full-year 2025, Pfizer reaffirmed its revenue outlook of USD 61.0 to USD 64.0 billion while raising its adjusted diluted EPS guidance to a range of USD 2.90 to USD 3.10, an increase of USD 0.10 at the midpoint from the previous forecast. The updated guidance incorporates favorable foreign exchange impacts, improved operational efficiency, and a reduction in the company’s effective tax rate from approximately 15% to 13%. Notably, the guidance absorbs a one-time USD 0.20 EPS impact related to the licensing agreement with 3SBio, Inc.
Operational Drivers of Growth: The company’s top-line performance was fueled by growth across key products. Vyndaqel revenues rose 21% operationally, driven by expanded patient uptake in the U.S. and international markets. Comirnaty surged 95% operationally, supported by U.S. market share gains and higher contractual deliveries abroad. Paxlovid revenues advanced 71% operationally, while Padcev and Lorbrena grew 38% and 48% operationally, respectively, reflecting strong uptake in their treatment areas. Eliquis and Abrysvo also contributed to growth, with the latter up 155% operationally due to favorable adjustments and international launches.
Challenges and Offsets: Despite broad-based growth, some products faced headwinds. Ibrance revenues declined 8% operationally, pressured by U.S. price reductions stemming from higher manufacturer discounts under the Inflation Reduction Act (IRA), as well as generic competition internationally. Similarly, Eliquis faced price erosion in certain global markets and was partially offset by higher demand. The IRA-related discounts continued to weigh on several products, reducing net prices in the U.S.
Capital Allocation and Strategic Investments: During the first half of 2025, Pfizer allocated USD 4.7 billion to internal R&D initiatives and USD 150 million toward business development transactions. Additionally, the company returned USD 4.9 billion to shareholders in dividends but refrained from share repurchases, leaving USD 3.3 billion authorized for potential future buybacks. Pfizer reiterated its intention to balance shareholder returns with strategic reinvestment and prudent deleveraging.
Cost-Saving Initiatives and Long-Term Outlook: Pfizer remains on track to achieve approximately USD 7.2 billion in cost savings by 2027 through its ongoing efficiency programs. These initiatives are expected to drive productivity improvements and support operating margin expansion. The company’s financial strength, pipeline advancement, and disciplined cost management position it to create long-term shareholder value despite challenges from pricing pressures and global policy headwinds.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Pfizer Inc. (NYSE: PFE) at the current market price of USD 27.12, as on Oct 01,2025 at 10:45 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Drug Manufacturers - General
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PFE Pfizer Inc |
-0.8473 3.18% | 25.81 | 15.52 | 9.60 | 2.31 | 1.61 | 2.56 | 9.54 |
| LLY Eli Lilly and Company |
-42.135 4.04% | 1002.00 | 78.14 | 31.95 | 16.34 | 45.83 | 16.65 | 54.36 |
| JNJ Johnson & Johnson |
2.76 1.20% | 233.51 | 29.17 | 14.33 | 3.74 | 5.18 | 3.80 | 15.22 |
| ABBV AbbVie Inc |
0.55 0.24% | 226.19 | 61.52 | 14.86 | 5.62 | 51.62 | 6.76 | 20.58 |
| MRK Merck & Company Inc |
2.56 2.25% | 115.92 | 59.83 | 12.33 | 4.50 | 6.47 | 4.94 | 23.79 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on October 1, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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