Key Stats for PFE Stock
- Past week’s performance: +2.3%
- 52-week range: $23 to $29
- Valuation model target price: $28
- Implied upside: +7.8% over 2.6 years
Value your favorite stocks like PFE with 5 years of analysts’ forecasts using TIKR’s new Valuation Model (It’s free) >>>
What Happened?
Pfizer Inc. (PFE) reported Q1 2026 adjusted earnings per share of $0.75, beating the consensus estimate of $0.72. Earnings per share, or EPS, represent the portion of net profit earned per share of common stock. Revenue broadly matched expectations.
But forward analyst consensus projects a two-year revenue CAGR of -2.6%, so total sales are expected to decline slightly as pandemic-era product revenues continue to normalize. CAGR stands for compound annual growth rate and measures how quickly a metric grows or shrinks on an annualized basis.
Several regulatory milestones followed the earnings report in quick succession. The European Commission approved Hympavzi for adults and adolescents with hemophilia A or B with inhibitors. Hemophilia is a rare inherited disorder that prevents normal blood clotting.
Pfizer and Arvinas also licensed Veppanu to Rigel Pharmaceuticals for global commercialization rights, since Rigel will lead the commercial launch of this newly FDA-approved breast cancer therapy. Veppanu targets tumors driven by a genetic mutation called ESR1m, which can make certain cancers resistant to standard hormone therapy.
Pfizer reported strong Phase 2 immune response data for an advanced pediatric pneumococcal vaccine. The results support advancing into a large-scale confirmatory trial. Sarah Cannon Research Institute also announced a new strategic oncology collaboration with Pfizer.
So while pipeline activity is accelerating, commercial revenue from these programs remains several years away, and investor sentiment stays measured as a result. If PFE stock is to re-rate higher, investors will need clear evidence that at least one major new program can deliver sustained revenue at scale.
See analysts’ growth forecasts and price targets for PFE (It’s free) >>>
Is PFE Stock Undervalued?
Under valuation model assumptions realized through 12/31/28, the stock is modeled using:
- Revenue growth (CAGR): -4%
- Operating Margins: 35.1%
- Exit P/E Multiple: 9.1x
Based on these inputs, the model estimates a target price of $28, implying 7.8% total upside from the current share price and a 2.9% annualized return over the next 2.6 years.
A 2.9% annual return falls well below what most equity investors consider an acceptable hurdle. So the model positions Pfizer as fairly valued rather than clearly cheap. The revenue growth assumption of -4% reflects the continued decline of Paxlovid and COVID vaccine revenues, both of which peaked during the pandemic and have since fallen sharply. Until a new product cycle gains commercial traction, those headwinds will weigh on near-term earnings power.
Operating margins of 35.1% are strong and reflect Pfizer’s manufacturing scale and high-margin specialty franchises. But robust margins alone cannot generate compelling returns when revenues are contracting. Large pharmaceutical peers like AbbVie and Merck trade at meaningfully higher forward multiples because their revenue outlooks are more durable over a similar horizon. Pfizer’s NTM P/E of approximately 9.1x is among the lowest in large-cap pharma.
The exit multiple of 9.1x is consistent with where the stock trades today, so the model implies little re-rating is embedded in the $28 target. The street consensus target of $29 aligns closely, reinforcing the view that near-term upside is modest. For the stock to deliver attractive returns, the pipeline must eventually generate commercial revenue that restores top-line growth and justifies a higher multiple.
What’s Driving PFE Stock Going Forward?
The advanced pediatric pneumococcal vaccine is the clearest near-term pipeline catalyst. Strong Phase 2 data support advancing into a pivotal trial, and success could expand Pfizer’s position in pediatric immunization. Pfizer already markets Prevnar 20 in this category. So a next-generation successor could reinforce its leadership while opening a broader dosing population.
Pfizer’s GLP-1 receptor agonist program is a longer-horizon but potentially transformative driver. GLP-1 drugs help regulate blood sugar and support weight loss, and they represent one of the largest pharmaceutical market opportunities in a generation. Phase 2b data for Pfizer’s injectable candidate showed encouraging weight loss results. Management is evaluating next steps for late-stage development.
Veppanu’s commercialization through Rigel creates a milestone-driven revenue layer for Pfizer and Arvinas. Pfizer can receive payments tied to Rigel’s commercialization progress in the ESR1-mutated breast cancer setting. This structure provides upside exposure without requiring proportionate direct commercial investment. The indication addresses patients who have progressed on standard hormone therapy, serving a meaningful unmet need.
Cost reduction remains a core management priority as well. Global headcount cuts are underway to lower the expense base and protect margins. Expense discipline buys time, but sustained recovery ultimately requires new commercial revenue momentum. Investors will judge Pfizer’s turnaround on pipeline execution rather than on cost management alone.
Estimate a company’s fair value instantly (Free with TIKR) >>>
Should You Invest in Pfizer?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up PFE, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track PFE alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
Analyze PFE stock on TIKR Free→
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
