According to analysts at Wells Fargo, Pfizer is poised for massive growth as its Covid treatments will remain relevant for years, not to mention generate billions of dollars of revenue for the company.
Pfizer's share price has been lagging other vaccine makers, but it could soon be poised for significant revenue growth.
Kena Betancur is pictured.
Pfizer has a "buy" rating and price target of $60 per share from Wells Fargo, which implies an upside of around 16% from current levels.
Pfizer's Covid treatments will generate major revenue for the company in the foreseeable future as new booster shots will be needed to deal with waning immunity and new variant, according to an analyst.
The firm predicts that Pfizer's vaccine business alone could generate over $5 billion per year in revenue.
The vaccine maker's new oral antiviral pill, Paxlovid, will be a "gamechanger" for the company's profits, with the potential to generate nearly $18 billion worth of sales next year.
Preliminary studies show Paxlovid reduces Covid hospitalizations and deaths by 89%, and Pfizer CEO Albert Bourla said earlier this week that full data on the treatment will be submitted to the FDA soon.
Pfizer is up more than 42% so far this year, which is better than the S&P 500 index, which is up 26%.
Moderna and BioNTech's stock prices have more than doubled in the past year, while Pfizer's stock price has fallen.
The analysts at Wells Fargo think the Street isunderestimating Pfizer's potential to dominate the COVID market for years to come. They are still bullish on the company's core business, with "pipeline progress as a matter of 'when and not if.'"
The key background is.
The emergence of the new Covid omicron variant has alleviated initial concerns despite the fact that vaccines are effective against it. The nation's top infectious disease expert, Dr Anthony Fauci, said recently initial data was "encouraging", while other reports showed that the new variant causes milder symptoms than feared. Pfizer and BioNTech both said earlier this week that they are continuing work on omicron-specific vaccines, though three doses of existing vaccines are also effective in neutralizing the variant.
Pfizer/BioNTech's Covid vaccine was greenlighted by the FDA.
Companies say that the Pfizer/BioNTech Covid-19 Booster is neutralizing the Omicron variant.
