2024-05-12 10:00:00 ET
Summary
- PFE's fundamental performance has been decent despite the COVID-19 headwinds, with bullish support seemingly found at the $26s level.
- Despite a deteriorating balance sheet and upcoming patent cliff, the management continues to prioritize dividend safety and payout growth in the FQ1'24 earnings call.
- The market has also priced in improved Free Cash Flow generation from 2025 onwards, with rich yields of 6.05%, making PFE's dividend investment thesis compelling.
- Combined with its inherent undervaluation, opportunistic investors may look forward to a potential capital appreciation ahead.
- It goes without saying that anyone adding here must size their portfolios accordingly, since it is undeniable that PFE's debt load is immense, worsened by elevated R&D efforts and margin dilution from M&A activities.
We previously covered Pfizer ( PFE ) (PFE:CA) in December 2023, discussing its pessimistic performance as the decelerating COVID-19 portfolio and underperforming bolt-on acquisitions had contributed to its mixed FY2024 guidance post-Seagen acquisition....
Read the full article on Seeking Alpha
For further details see:
Pfizer's Bottom May Be Here - Its Rich Yield Is Tempting