Biopharmaceutical giant Pfizer (NYSE:PFE) said it received all required regulatory approvals to close its $43 billion deal to buy Seagen (NASDAQ:SGEN). Seagen is developing therapies for the treatment of cancer. Pfizer expects to close the deal on December 14. Goldman Sachs analyst Chris Shibutani sees this development as a positive advancement. Shibutani remained upbeat about PFE’s prospects and reaffirmed a Buy rating on Pfizer stock on December 12.
The analyst has a price target of $37 on PFE stock, representing an upside potential of 29.46% from current levels.
Let’s dig deeper.
Seagen to Boost Pfizer’s Revenue
Pfizer will host an investor webcast on December 13 to discuss the Seagen acquisition and provide a 2024 financial outlook. Meanwhile, Shibutani believes that the successful conclusion of the “Seagen transaction is an important milestone for Pfizer and meaningfully improves PFE’s end-of-decade revenue outlook.”
Shibutani reiterated confidence in Seagen’s products. The analyst emphasized that Seagen’s offerings are backed by compelling clinical data, fuelling optimism about Pfizer’s prospects following the deal’s completion.
Notably, Pfizer announced changes to its commercial structure to include Seagen. Pfizer is establishing a new business entity, the Pfizer Oncology Division, merging specific oncology commercial and research and development (R&D) operations from both companies. Additionally, Pfizer will split its non-oncology business into two divisions focused on the U.S. and international markets.
In light of these developments, let’s look at what the Street recommends for PFE stock.
Is Pfizer a Good Stock to Buy Now?
Though the Seagen deal is expected to boost PFE’s top line, analysts maintain a cautiously optimistic outlook on the stock as COVID-related products remain a drag.
With five Buy and eight Hold recommendations, Pfizer stock has a Moderate Buy consensus rating on TipRanks. Further, analysts’ average price target of $39.73 implies 39.01% upside potential from current levels.
