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RBC Capital Initiates Pfizer (PFE) with $25 Target, Warns of Structural Revenue Headwinds

Pfizer Inc. (NYSE:PFE) is included among the 14 Best Affordable Dividend Stocks to Buy According to Analysts.

Photo by Dan Dennis on Unsplash

On February 25, RBC Capital initiated coverage of Pfizer Inc. (NYSE:PFE) with an Underperform rating and a $25 price target. The firm said its outlook reflects an “insurmountable” $15B-$20B revenue decline expected through 2030, with limited visibility into new products that could help offset the loss. The analyst noted that Pfizer’s roughly 6% dividend yield offers some support and stands above the peer average. Even so, that alone may not be enough to counter deeper structural challenges. The firm also sees a lack of meaningful catalysts heading into 2026, according to the research note.

Pfizer also signed a licensing agreement with China-based Sciwind Biosciences for its type 2 diabetes drug, ecnoglutide. Under the agreement, Sciwind could receive up to $495 million in milestone payments, along with an upfront fee that was not disclosed. Pfizer will gain the rights to commercialize the drug in mainland China.

Sciwind said the partnership supports Pfizer’s broader expansion in China’s metabolic disease market. Ecnoglutide belongs to the GLP-1 receptor agonist class, which helps regulate blood sugar and control appetite. This category has drawn strong interest across the industry, with companies like Novo Nordisk, Eli Lilly, Innovent Biologics, and Guangzhou Innogen investing heavily in similar treatments.

The drug received approval in China in January. Sciwind has also submitted an application for a version aimed at weight management. Pfizer recently licensed another experimental GLP-1 treatment from a different Chinese drugmaker, signaling continued focus on this fast-growing area.

Pfizer did not disclose the upfront payment amount, launch timing, or expected pricing. Unlike some competing GLP-1 drugs, including Novo Nordisk’s Ozempic and Eli Lilly’s Mounjaro, ecnoglutide will not be covered under China’s national health insurance program for diabetes treatment.

Pfizer Inc. (NYSE:PFE) operates as a global biopharmaceutical company focused on discovering, developing, manufacturing, and marketing medicines worldwide.

While we acknowledge the potential of PFE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Best Strong Buy Dividend Stocks to Invest In and Goldman Sachs Dividend Stocks: Top 14 Stock Picks

Disclosure: None.  Follow

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