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How June Turned Out for Pfizer

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A look at Pfizer

Pfizer (PFE), one of the world’s largest pharmaceutical companies, divides its business into two segments: Innovative Health and Essential Health. The chart below shows Pfizer’s revenue and EPS since Q1 2017, and estimates for Q2 2018.

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Analysts’ revenue estimate

Pfizer’s revenue is primarily driven by pharmaceuticals Lyrica, Ibrance, Eliquis, Xeljanz, and Xtandi, new products, and alliance revenue. Analysts expect Pfizer’s revenue to rise 3.4% year-over-year to $13.3 billion in Q2 2018, and for it to see EPS of $0.74. Pfizer is set to announce its Q2 2018 results on July 31.

On June 6, Pfizer announced a ~$600 million investment through Pfizer Ventures in biotechnology and emerging growth companies. At present, Pfizer Ventures invests in six neuroscience companies: Aquinnah, Autifony, MindImmune, Neuronetics, Cortexyme, and MISSION.

Analysts’ recommendations

Pfizer stock rose ~0.2% in June and had risen ~0.4% year-to-date as of July 3. Analysts’ 12-month target price of $39.86 implies the stock could return ~9.7% based on its July 3 price of $36.35.

Of the 22 analysts tracking Pfizer, two recommend “strong buy,” ten recommend “buy,” eight recommend “hold,” and two recommend “strong sell.” The iShares US Healthcare ETF (IYH) invests 6.1% of its holdings in Pfizer, 4.0% in AbbVie (ABBV), 4.7% in Merck (MRK), and 2.6% in Gilead Sciences (GILD).

 

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