PFE, MRK, and other big pharmas have recently received FDA approvals for some of their new drugs which have had a noticeable positive effect on their stock prices. Is this just coincidental or has the FDA lowered the bar for drug approval?
Pfizer is getting approvals okay, but nothing in the line of Lipitor. Lipitor was a 10 billion dollar medication before it went generic so it will be tough to make up for it. At one time Pfizer was down to just a little over 12 dollars. It has more than double since then, so how much higher can we expect it to go? I'm guessing somewhere in the neighborhood of 32.00$. This is a personal expectation.
Hey, the loss of lipitor is really old news and has been discussed ad naseum.
Fact is Pfizer is expected to earn roughly $2.40 next year. Today's share price reflects a very modest price earnings multiple.
That's the story for this year, stop looking in the rear view mirror.
Finally,the mo' we've been waiting years for.
Let's remember, PFE was trading in the mid thirties nearly 15 years ago, with a much much price earning multiple. If you just place a market average PE multiple of 15 for next years earnings, you get a stock price of $35.50!
big money lies ahead for this year.