Don't Sleep On Pfizer: The Turnaround Is Just Getting Started

(10min)

Summary

  • Despite a revenue miss, Pfizer's Q1 earnings crushed estimates due to aggressive, structural cost-cutting, signaling a powerful shift towards operational and margin excellence.
  • Management is expanding its cost-savings program to a massive $7.7 billion by 2027, aiming to create a powerful EPS growth story despite flat revenues.
  • Pfizer's non-COVID portfolio is firing on all cylinders, with key drugs like Nurtec and Padcev showing robust double-digit growth, proving underlying business health.
  • A simple Dividend Discount Model suggests a fair value of over $31 per share, indicating a potential upside of nearly 29% from current levels.
  • The market has already priced in future patent cliffs, but I believe it's ignoring the strength of the core business, pipeline, and margin expansion.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Pfizer world headquarters in New York City, USA.

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Intro & Thesis

I've been covering Pfizer Inc. (NYSE:PFE) stock here on Seeking Alpha since November 2021, and I have always had a "Buy" rating, even when the stock was hitting new lows. My most recent article on PFE went viral, probably

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This article was written by

12.89K Followers
Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PFE either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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