I am bullish on Pfizer It is attractive because of its attractive valuation and strong business model.

Pfizer, a multinational biopharmaceutical corporation is recognized as a leader in solving complex health issues.

The company has been working for over 150 years to help make a difference in the lives of the world’s citizens. TipRanks has Pfizer stock charts.

The Strengths

Pfizer’s most recent financial highlights show the underlying strength of the business, and indicate consistent growth from a number of products and segments.

Pfizer’s COVID-19 vaccine (BNT162b2) has been distributed globally in an attempt to scale up the efforts for combating the COVID-19 pandemic.

Over 1 Billion doses of vaccine were distributed worldwide, according to the company. For the second quarter in 2021, $7.8 billion was generated from direct sales as well as alliance revenue.

Apart from the increase in vaccine sales, the company saw an additional 10% growth in operational revenue for the remainder of its business.

Latest Results

Pfizer beat Wall Street expectations on earnings and revenue for its second quarter. The company’s report for the second quarter showed revenue of $19 billion — an increase of 92% — compared with analysts’ estimates of $18.7 billion.

The adjusted earnings per share was $1.07 as opposed to the $0.97 expected.

In addition, the company announced it would raise its Fiscal Year 2021 guidance in order to account for higher revenues expected from all its business segments.

As opposed to the $70.5 billion-$72.5 billion estimate, revenue is expected to range from $78 billion up to $80 billion. This does not include the expected $33.5 billion from COVID-19 vaccinations this year.

Calculating Valuation Metrics

Pfizer’s stock looks pretty attractively valued right now, as its EV/EBITDA ratio and P/E ratio both indicate that the stock is trading at a discount to its historical range.

The forward ratio of EV/EBITDA is 8.8x and the forward ratio P/E is 9.7x.

Wall Street’s Take

Pfizer has a consensus of Hold analysts from Wall Street. It is based on nine Hold ratings for the past three-months and two Buy ratings.

Pfizer’s average price target is $45.55, which puts upside potential at 8.8%.

Summary and Conclusions

Pfizer is an established company, with many strengths.

Despite the strong performance of this stock in recent months, Wall Street analysts remain neutral.

However, it still appears attractively-priced when you consider its historic valuation multiples.

Disclosure: Samuel Smith didn’t hold any position at the time this article was published.

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