Pfizer Stock Has a 30% Upside, According To One Analyst

(CTN News) – An analyst who recently began covering Pfizer (NYSE: PFE) is telling investors now is the time to buy. According to Guggenheim analyst Vamil Divan in a report released last week, Pfizer is likely to be worth $36 per share. The closing price on Friday represented a gain of approximately 30%.

In response to the COVID-19 pandemic, Pfizer’s cash generated from operations surged, and its share price followed suit. Stock, however, has declined by more than 50% since its pandemic-era high as investors wonder whether and how the company can regain growth.

A breakthrough in cancer treatment

According to Guggenheim’s Divan, the company does have a path towards growth. As the company commercializes treatments for cancer and respiratory syncytial viruses, which are more commonly known as RSV, he believes that the company’s near-term financial estimates may be overly conservative.

In December 2023, Completed its $43 billion acquisition of the oncology company Seagen. As a result of the acquisition, the company has now doubled its oncology pipeline. Pfizer investors seeking growth should pay attention to this area. It is possible to own stock without considering it a growth stock, however.

Earnings from passive sources

Pfizer shares are a great investment opportunity for income investors at the moment. With shares historically low, the dividend yield of the stock was recently close to 6%. Therefore, investors can expect to receive high levels of passive income as long as the business maintains its level of cash flow and income generation.

The dividend yield of has averaged slightly below 4% over the past five years. Therefore, its current yield is significantly higher from this perspective. In spite of analysts like Divan’s prediction that growth will resume, income investors can be happy owning now.

Is now the right time to invest $1,000 in Pfizer?

Consider these factors before you invest in Pfizer stock:

Motley Fool Stock Advisor analysts have identified their top 10 stocks for investors to buy right now… and Pfizer is not on the list. A number of the stocks that made the cut have the potential to produce enormous returns in the near future.

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