Pfizer's R&D Optimization Delivers Great Results & Secure Dividends
Summary
- PFE's meltdown has already triggered the richer forward dividend yields, made secure by the growing cash flow and the ongoing cost optimizations.
- The same has been observed in the FQ1'25 adj EPS outperformance, reiterated FY2025 guidance, and them "currently trending toward the upper end of the adjusted diluted EPS guidance range."
- While there is no avoiding the COVID-19 sales erosion and the upcoming patent cliff with ~$29B in revenues at stake, PFE has optimized its R&D efforts indeed.
- With its new acquisitions and non-small cell lung cancer therapy/ candidates expected to bring forth additional revenues at over $20B, we believe that the sell off has been overly done.
- While PFE remains a Buy, it goes without saying that the stock is only suitable for those seeking minimal growth, worsened by the potential tariff/ Medicare redesign risks.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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