Pfizer Inc (PFE)

[BottomBounce]

Pfizer $PFE upgraded We raise our target price by $4 to $43, 13.0x our 2022 EPS estimate, in line with PFE's 10-year historical forward P/E average. We keep our 2021 EPS estimate at $3.26 and our 2022's at $3.32. We continue to think PFE is well-placed to largely benefit from the massive Covid-19 vaccine demand globally throughout 2021. As we previously explained in our February 2021 thematic report Ready for your Booster Shot?, we think that with the emergence of more dangerous Covid-19 variants, there is an increasing chance that repeat vaccinations to boost efficacy will be necessary. Pfizer CEO Bourla mentioned on Friday that there may be a need for a third dose of their mRNA-based vaccine jointly developed with BioNtech after 6-12 months following the initial inoculation. PFE also asked for emergency use authorization of the vaccine for U.S. children 12-15 years of age, expanding the market opportunity, in our view. We do not expect any issues with the FDA authorization and anticipate it to take place sometime in Q2 2021.