Wolfe Research Says COVID Uncertainty Continues to Weigh on Pfizer (PFE) Outlook

With an annual dividend yield of 6.68%, Pfizer Inc. (NYSE:PFE) is included among the 10 Best Dividend Stocks with 5%+ Yields and Growing Cash Flows.

On May 14, Wolfe Research analyst Alexandria Hammond raised the firm’s price recommendation on Pfizer Inc. (NYSE:PFE) to $26 from $25. It reiterated an Underperform rating on the shares following what the firm described as “a rather uneventful print.” The analyst said the revenue beat “likely warranted a guidance raise if it weren’t for the unpredictable COVID” business. The target increase reflected the firm’s view on five-year sales CAGR and Vyndamax exclusivity through 2031.

During the Q1 2026 earnings call, Pfizer described the quarter as operationally strong. Chairman and CEO Albert Bourla highlighted two legal developments that he said strengthened the company’s long-term outlook. Bourla said the recent settlement agreements related to patent infringement claims involving Vyndamax could meaningfully improve Pfizer’s growth profile after 2028. He added that the agreements increased management’s confidence that the company could achieve five years of high single-digit revenue CAGR beginning in 2029.

He also pointed to the Belgian court ruling tied to EU Comirnaty contracts, saying it should support future EPS and cash flow. According to Bourla, stronger cash flow visibility gives the company more flexibility in its broader capital allocation strategy, including maintaining and supporting the dividend.

Pfizer Inc. (NYSE:PFE) is a research-based global biopharmaceutical company focused on the discovery, development, manufacturing, marketing, sale, and distribution of biopharmaceutical products worldwide.

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