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As the American people prepare to begin vaccinating the new corona vaccine developed by Pfizer and BioNTech this week, RBC Capital analyst Randall Stanicky praised Pfizer’s accomplishments and was able to bring the vaccine to market in record time and not they liked their opponents. You accept funds from the federal government, but you believe that Pfizer’s stock price may have reached its limit.
Pfizer (PFE-US) closed at $ 38.71 on Tuesday. It has risen from its low of $ 26 in March of this year. Stanicky believes that Pfizer’s share price has fully reflected the opportunities that vaccines offer. Therefore, the stock is rated “outperforming.” “” is reduced to “according to the performance of the industry”, which is equivalent to “hold”, and the target price is reduced from US $ 43 to US $ 42.
“We believe that the range may fluctuate in the short term.”
Pfizer fell 2.25% on Wednesday to close at $ 37.84. On the same day, the S&P 500 was up 0.18% and BioNTech (BNTX-US) fell 4.87% to close at $ 105.78.
Investors have been selling vaccine stocks taking advantage of this week’s good news, including the possibility that the US FDA will approve Moderna’s new corona vaccine (MRNA-US), but Moderna’s share price has fallen. it tumbled this week, falling from $ 160 to a 7% drop on Wednesday. Up to US $ 137.
Stanicky said that Pfizer’s recent share price has largely reflected that “the company can sell all 1.3 billion doses of the new corona vaccine in 2021.” Their financial model estimates that Pfizer and BioNTech alone will be able to sell more than 1 billion doses of vaccine next year, at $ 19.50 each, of which 45% will be sold in the United States. Therefore, vaccine revenue will bring in US $ 20 billion, representing approximately 45% of Pfizer’s global revenue in 2021, and about 90 cents on its estimated adjusted earnings per share of US $ 3.5 .
However, other new corona vaccines will appear on the market. For example, Moderna’s candidate vaccine is likely to be licensed by the United States this week. With the end of the epidemic, the new crown vaccine market will shrink and Pfizer / BioNTech’s annual sales revenue of hundreds of millions of vaccines will also shrink.
However, he believes that Pfizer’s other businesses remain constructive and can increase annual revenues by 10%. Pfizer has divided its slower growing products into Viatris (VTRS-US). However, Pfizer will face the impact of the expiration of some patents after 2026. Stanicky does not believe that some projects (such as gene therapy) that Pfizer is developing will be mature enough to support lost sales after the expiration of the patent. .
He said: “Pfizer has reached the end of the competition for the new crown vaccine first. This is commendable, but the better sales situation for the new crown vaccine has been fully reflected in the share price. “.
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