Forget the Dividend. This Could Be the Real Reason to Buy Pfizer Stock Now

Forget the Dividend. This Could Be the Real Reason to Buy Pfizer Stock Now

Vandita Jadeja

Mon, September 7, 2026 at 8:00 PM GMT+3 5 min read

Quick Read

• PFE earns a BUY with a $32.72 price target implying 14% upside, on top of a nearly 6% dividend yield.

• Pfizer's 9x forward P/E trades at a steep discount to BMY's 11x, with a dividend nearly double Bristol-Myers Squibb's.

• The bull case targets $36.62, driven by Padcev's 20%-plus revenue growth and a GLP-1 obesity drug showing 16% mean weight loss in Phase 2b.

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Pfizer's 5.91% dividend yield anchors the story, and a pipeline finally catching a bid adds meaningful upside. My 24/7 Wall St. price target reflects that.

Pfizer (NYSE:PFE) trades at $28.77 as of midday September 3, 2026. My 24/7 Wall St. price target is $32.72 over the next 12 months, implying 13.84% upside, with a buy recommendation and high confidence (90%). Add the dividend and the total return case strengthens.

A Momentum Shift Backed by Real Numbers

PFE has quietly rerated in 2026. Shares are up 22.6% year to date and 15.94% in the past month, closing near the 52-week high of $29.09.

Q2 2026 revenue landed at $15 billion with adjusted diluted EPS of 77 cents. Management raised the revenue guide midpoint by $500 million to $60.5 to $62.5 billion. The company beat adjusted EPS in all ten of the past ten quarters. CEO Albert Bourla called this the "defining period" for Pfizer, and operating momentum supports it.

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Bull Case Points to $36+

The bull scenario points to $36.62, a 27.42% total return. Padcev revenue grew over 20% in Q2 with an addressable population of more than 42,000 patients in the U.S. for muscle-invasive bladder cancer.

The Metsera-derived monthly GLP-1 verubenotide showed approximately 16% mean weight loss over 32 weeks in Phase 2b extension data, entering a market sized at $150 billion. Add $9.7 billion in cumulative net cost savings through 2029 and a return to growth in 2029, and the multiple could expand.

What Could Go Wrong

The bear case caps near $28.85, essentially flat. Risks include a $1.5 billion generic and biosimilar headwind in 2026, Comirnaty and Paxlovid fading with COVID revenue cut to approximately $4 billion, and the adjusted tax rate stepping up to 16.9%.

Bulls counter that the operating hit reflects heavy R&D investment, with $2.5 billion deployed internally in Q1 alone and roughly 20 key pipeline assets funding post-2028 growth.

How Pfizer Stacks Up Against Merck and Bristol-Myers

Merck (NYSE:MRK) faces KEYTRUDA loss of exclusivity while diversifying into cardiometabolic and vaccines. Merck guided 2026 non-GAAP EPS of $5.04 to $5.16 on revenue of $65.8 billion to $67 billion. PFE at a forward P/E of roughly 9x trades at a meaningful discount.

Bristol-Myers Squibb (NYSE:BMY) manages Revlimid and Eliquis erosion via a growth portfolio led by Camzyos and Breyanzi. BMY guides 2026 non-GAAP EPS of $6.05 to $6.35, putting its forward P/E near 11x. PFE's lower multiple plus a dividend nearly double BMY's supports the buy call.

Why Pfizer Screens as a BUY Here

My 24/7 Wall St. price target for Pfizer is $32.72, a buy at high confidence. The tipping factor is a cheap forward multiple and a real 2026 pipeline catalyst calendar: five regulatory decisions, eight key readouts, and 19 pivotal study starts.

I'd be a buyer if you believe Padcev, Metsera obesity assets, and cost savings can offset the loss-of-exclusivity cliff. I'd stay on the sidelines if Most-Favored-Nation pricing and Section 232 tariffs will define the next two years.

Here is where my model projects PFE could trade, assuming current growth trajectories and market conditions hold.

These projections assume Pfizer executes on Metsera, oncology, and cost savings. Significant upside or downside could come from obesity trial readouts or Most-Favored-Nation pricing actions.

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