Healthcare company Pfizer Inc. (NYSE: PFE) has taken a step closer to its goal of vaccinating all American children under the age of five years against COVID-19. The U.S. Food and Drug Administration’s analysis recently concluded that Pfizer’s COVID-19 vaccines are safe and effective for the nation’s small kids, with no new concerns.
However, a meeting with outside experts is scheduled on Wednesday to arrive at the final decision regarding the effectiveness of the vaccine and authorization to inject small kids. Following this, the Centers for Disease Control and Prevention recommendation will be sought to decide on the group of children who need vaccinations.
Vaccinations are likely to begin next week, pending approval.
Supporting Data
According to the FDA, children injected with Pfizer’s shots during the clinical trial showed elevated levels of virus-fighting antibodies, which were likely to safeguard them against the coronavirus. Pfizer’s three-shot series vaccine demonstrated 80% efficacy to prevent symptomatic COVID-19. Nevertheless, results were declared prior to the spread of the Omicron variant, and, therefore, results could vary as Pfizer’s investigation is still ongoing.
Apart from Pfizer, Moderna’s (MRNA) COVID-19 vaccine for children aged 6 months to 17 years is also awaiting experts’ approval. According to the FDA, “Available data support the effectiveness of the Moderna Covid-19 vaccine in preventing symptomatic Covid-19 in pediatric age groups from 6 months through 17 years of age.”
Analysts’ Recommendation
Recently, Mizuho Securities analyst Vamil Divan maintained a Hold rating and a price target of $55 (10.07% upside potential) on the stock.
Divan said, “…we believe it is likely sufficient for regulators to grant an EUA for the vaccine to be used in children 6 months to under 5 years of age. However, we wonder how much demand there will ultimately be for administering the vaccine to children in that age range, given how the pandemic has evolved and since COVID-19 cases tend to be relatively mild in that patient population.”
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on six Buys and nine Holds. The average Pfizer price target of $58.92 implies 17.91% upside potential from current levels. Shares have increased 30.37% over the past year.
Smart Score
According to TipRanks’ Smart Score system, Pfizer gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.
Ending Words
Based on the prior approvals in other age groups, Pfizer’s COVID-19 vaccine is expected to get authorization for children as well. This is expected to push shares even higher, maintaining the upward trajectory in price and instilling investor confidence.
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