Pfizer (PFE) Wins TUKYSA Approval And LITFULO Data, Is It Still 3% Undervalued?

Why Pfizer stock is back in focus

Pfizer (PFE) has moved back into the spotlight after the FDA cleared TUKYSA as a frontline maintenance option for HER2+ metastatic breast cancer, and fresh LITFULO data reshaped expectations for its immunology portfolio.

These oncology and immunology updates have landed while Pfizer’s share price has climbed 15.46% over the past 90 days and delivered an 11.20% year to date share price return, with a 16.68% total shareholder return over the last 12 months, suggesting that momentum has started to rebuild around the story.

Scan how Pfizer’s oncology and immunology news compares with other healthcare stocks showing fresh momentum using the curated 35 healthcare AI stocks

Pfizer shares have already rerated on the oncology and immunology news, yet the stock still trades at a sizeable estimated intrinsic discount. Is this rebound the main course, or just the opening move before valuation catches up?

Most Popular Narrative: 3% Undervalued

Pfizer closed at $28.00, while the most followed narrative pegs fair value at $28.88 using a 7.24% discount rate. This frames the recent share price rebound as still modestly below that central estimate.

Expansion of launched and acquired products, which management now describes as running at around a US$13b annualized revenue rate and growing in the 20% range, continues to support the view that Pfizer can further shift its mix toward non COVID therapies and sustain revenue as loss of exclusivity pressures emerge.

See why 540 investors see Pfizer as 3% undervalued.

Result: Fair Value of $28.88 (UNDERVALUED)

Still, the Pfizer story carries clear pressure points, including the guided COVID revenue step down and the risk that key oncology or obesity programs underperform current expectations.

Find out about the key risks to this Pfizer narrative.

Next Steps

Pfizer clearly splits opinion right now, with both pressure points and bright spots in play. Take a moment to weigh the evidence yourself, look through the key risks and potential upsides, and then decide where you stand using the 2 key rewards and 4 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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