Pfizer (PFE) grabbed investors’ attention after signing a pricing agreement with the Trump administration. Meanwhile, analysts have responded positively, reaffirming their Buy ratings on PFE stock. On Tuesday, PFE stock surged 6.83%, and it added 0.31% in pre-market trading on Wednesday.
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Yesterday, Pfizer agreed to lower prices on some of its top-selling drugs as part of a deal with President Trump, who also granted the company a three-year exemption from pharma tariffs. As part of this deal, Pfizer also plans to offer its medications through a direct-to-consumer platform, TrumpRx, enabling Americans to buy prescription drugs online.
Additionally, Pfizer’s latest $7.3 billion acquisition of biopharma company Metsera, which specializes in weight-loss drugs, is further strengthening investor confidence.
BMO Capital Stays Bullish on PFE
Following the deal, BMO Capital’s analyst Evan Seigerman reiterated his Buy rating on PFE stock, predicting an upside of almost 18%. He sees Pfizer’s recent price cuts as unlikely to hurt its core business, noting that the concessions should be limited and could even prove beneficial. At the same time, Trump revealed that Pfizer has plans to invest $70 billion in U.S. manufacturing and R&D. While much of this spending was likely already planned, Seigerman highlights that the commitment to U.S. manufacturing comes at a strategic moment.
Before this, Seigerman praised Pfizer’s acquisition of Metsera. He noted that this acquisition lets the company re-enter the obesity market with promising GLP-1 and amylin therapies to compete with Eli Lilly (LLY) and Novo Nordisk (NVO).
Along with BMO, Jefferies’ four-star-rated analyst Akash Tewari also reiterated his Buy rating on PFE, forecasting 33.44% upside.
Is Pfizer Stock a Good Buy Right Now?
According to TipRanks, Wall Street has a Hold consensus rating on PFE stock, based on 12 Holds, four Buys, and one Sell assigned in the last three months. The average Pfizer stock price target of $28.53 implies 12% upside from current levels.
Year-to-date, PFE stock has declined by 4%.
