Pfizer Share Price Forecast December 2021 – Time to Buy PFE?

Shares of American multinational pharmaceutical and biotechnology corporations (NYSE: PFE) are in the red today, after closing at $58.71 on December 23^rd (17:59). Pfizer’s COVID-19 franchise is expected to drive revenue for years. The company was having a stellar year without Covid-19 related revenue which has allowed it to pay an above-average dividend that appears to be well-protected.

Pfizer – Technical Analysis

Pfizer’s financial statement indicates that its market cap is at $329.531 billion with total assets worth $179.188 billion. Revenue for 2020 was at $41.91 billion with a profit margin of 22.95% compared to $41.17 billion in 2019.

Oscillators such as Relative Strength Index (14(62.29),  Stochastic %K (14, 3, 3)(76.66),  Commodity Channel Index (20)(73.03),  Average Directional Index (14)(39.94) and Awesome Oscillator(6.52) are neutral. On the other hand, Moving averages such as Exponential Moving Average (10)(58.00),  Simple Moving Average (10)(58.13), Exponential Moving Average (20)(55.86),  Simple Moving Average (20)(55.50) and Exponential Moving Average (30)(54.15) are indicating a buy action.

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Recent Developments

Pfizer did not deliver any new developments this week but has experienced a slight decline. This seems to be a by-product of the overall market rising after a pullback in recent days due to concerns about the spread of the coronavirus omicron variant. Overall it has been a great year for the company as its share price has increased more than 62% this year. The management estimates that it will record annual revenue of between $81 billion and $82 billion, which would mean growth of between 93% and 95%, year over year. It is well on the way to achieving these targets as evidenced by reported revenue of $57.6 billion, up 91% year over year.

Much of the growth has been as a result of Comirnaty, the COVID-19 vaccine the company developed with BioNTech. The company expects to make $36 billion in revenue from vaccines alone. According to Pfizer’s Global President of Vaccines, Nanette Cocero, the company expects that Covid is here to stay.  A yearly shot would be needed to keep up with the various variants, which would, in turn, increase the company’s revenue.

Additionally, Pfizer also has had great trial results for its newly developed COVID-19 antiviral pill, Paxlovid, which has reduced the risks of hospitalization or death from COVID-19 by 89% when taken within three days of the onset of symptoms and 88% if taken within five days of the onset of symptoms. If the FDA approves the drug, the U.S. government already has a deal in place to pay $5.3 billion for 10 million courses of Paxlovid.

Pfizer has invested the money from COVID-19 vaccines into research and development and into some key acquisitions. Last week it was revealed the company is on the verge of closing a $6.7 billion deal to buy Arena Pharmaceuticals. Arena’s lead investigational drug, Estrasimod is in several Phase 3 studies for immune-mediated and inflammatory diseases.

 Should You Buy PFE Shares?

Investors should realize that Pfizer has a huge portfolio of drugs without its COVID-19 franchise. Pfizer’s hospital therapeutic division, which includes Epipen, has brought in $6.9 billion, up 21% compared to the same period in 2020. Pfizer’s oncology drugs have brought in more than $9 billion through nine months.

The company has raised its quarterly dividend by 2.3% to reach $0.40. This represents a yield of 2.6% with a cash dividend payout ratio of 29.6%.  The company has increased dividends every year for the last eleven years and has increased 25% over the past 5  years. Considering this now is a good time to buy PFE shares for your portfolio.

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