Pfizer: a controversial outlook

Pfizer: a controversial outlook

2021-02-01 • Dikemaskini

Pfizer reports its Q4’2020 performance on Tuesday, at 17:00 MT time.

Its EPS is expected to be within the range of $0.45-0.50. Will Pfizer manage to beat the forecast? There are mixed reviews on that. In Q4, Pfizer completed the separation of the Upjohn unit to form “New Pfizer”. Sales of its primary medications have been pretty good during the months September-December. However, some particular products have declined. In addition, the disruption of doctor visits and related healthy activities around the world may have brought significant damage as well. That’s why observers are very moderate with optimism on Pfizer. The same controversy appears when you look at the chart.

The long-term view doesn’t suggest any firm uptrend. Rather, a continuous oscillation and mid-term friction. While the 2007-2018 performance has been a steady uptrend that ended at the highs above $43, the recent years did favor this stock too much. It met the Covid-19 era at the lows of $28. Thanks to the vaccine, it rose to $43 – the entrance to the highest-ever area where it was in 2018 and 2002. However, the vaccine rush seems to have cooled off, and the stock price doesn’t seem to be in an uptrend.

Therefore, in the scenario of weak performance, bears will likely drag it below $35, and the nearest mid-term will likely see it between $32 and $35.

Otherwise, if Pfizer manages to give a positive surprise to investors against the expected EPS of $0.45, the stock may reverse to the upside and get pushed to approach $43 again.

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