Pfizer Inc. reports a revenue decline linked to weaker COVID-19 vaccine sales and a $4.4 billion impairment charge, prompting a strategic pivot towards the obesity drug market and an enhanced oncology portfolio after acquiring Seagen for $43 billion. Despite these challenges, analysts suggest Pfizer is undervalued, trading at a 57% discount to intrinsic value with an appealing forward P/E ratio of around 9. The company aims to maintain revenue stability through a promising pipeline of products and plans for approximately 4% growth outside of COVID-related offerings.
“Pfizer ($PFE) looks undervalued on paper: forward P/E ~9x, ~6.3% dividend yield, and 2026 guidance of $59.5-62.5B revenue with $2.80-3.00 adj. EPS.”
“Value play if they execute—could be a solid income + rebound candidate.”
“On March 23, 2026, Valneva and its development partner Pfizer Inc. issued a press release 'announc[ing] topline results from the Phase 3 VALOR “Vaccine Against Lyme for Outdoor Recreationists” clinical trial'. Although the two companies characterized the data as positive, the press release reported that the vaccine failed to meet its primary endpoint, citing a low incidence of disease cases.”
“On April 13, UBS Group AG raised its price recommendation on Pfizer Inc. (NYSE:PFE) to $27 from $25. It maintained a Neutral rating on the shares.”
“He added that, at the midpoint of guidance, revenue excluding COVID products and those impacted by loss of exclusivity is expected to grow roughly 4% on an operational basis compared to last year.”
“Management also said it is aiming for the first in a series of potential approvals for its obesity portfolio starting in 2028.”
“Revenues from Pfizer/BioNTech’s Comirnaty are likely to have declined in the first quarter due to narrower COVID-19 vaccine recommendations in the United States that have reduced Comirnaty’s eligible patient population.”
“Sales of key vaccine Prevnar are likely to have benefited from higher sales in ex-U.S. markets, which will likely offset the impact of lower demand in the United States.”
“Among the newer products, sales of the RSV vaccine, Abrysvo, are likely to have gained from favorable net price and market share for the adult indication in the United States and launch uptake in some international markets.”
“From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its five-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 9.25 forward earnings, significantly lower than 17.08 for the industry as well as the stock’s five-year mean of 10.02.”
“Pfizer PFE also forayed into the lucrative ADC space with the acquisition of Seagen for $43 billion in late 2023.”
“The pharmaceutical giant is expected to announce its fiscal first-quarter earnings for 2026 before the market opens on Sunday, May 5. Ahead of the event, analysts expect PFE to report a profit of $0.74 per share on a diluted basis, down 19.6% from $0.92 per share in the year-ago quarter.”