Pfizer Sees $25 Target, 7% Yield and Mid-2026 Oncology Readouts
PFE•Pfizer received an upgrade to Sector Perform from Underperform by RBC Capital Markets, which maintained a $25 price target as shares trade near its 9x forward P/E. The company’s 7% dividend yield and late-stage oncology readouts in mid-2026 and H2 bolster its outlook.
1. RBC Upgrade and Valuation Reset
Pfizer was upgraded to Sector Perform from Underperform by RBC Capital Markets, citing an 11% pullback from its 2026 highs and valuation near a 9x one-year forward P/E. The analyst maintained a $25 price target reflecting a more balanced risk-reward profile.
2. Robust Dividend Yield
The company’s nearly 7% dividend yield is highlighted as a key support for income-focused investors, underpinning the share price during volatile market conditions and offering a buffer against downside risks.
3. Late-Stage Oncology Catalysts
RBC pinpointed two critical late-stage readouts—sigvotatug vedotin in second-line lung cancer expected mid-2026 and mevro in metastatic prostate cancer due in H2—as potential catalysts that could lift Pfizer’s 2026 outlook.
4. Growth Challenges and Pipeline Risks
Despite the upgrade, Pfizer faces long-term headwinds from patent expirations and a lagging obesity franchise, with potential execution risks in complex dosing and limited differentiation delaying visibility into future growth beyond 2027.
