Why Pfizer Stock Is Testing New Highs Today

·2 min read

Pfizer Raised Prices For COVID-19 Vaccines In EU

Shares of Pfizer gained strong upside momentum and moved to new highs after reports indicated that Pfizer and Moderna raised prices of their coronavirus vaccines in the latest contracts with EU.

According to Financial Times, the price for a Pfizer shot was increased from 15.50 euros to 19.50 euros, an increase of roughly 25%. Moderna’s price grew from 19 euros to $25.50 per shot.

Not surprisingly, the market quickly reacted to the new deal which will increase Pfizer’s revenue. This deal shows that Pfizer has pricing power as demand for coronavirus vaccines stays strong. At the same time, Pfizer has already supplied the initial doses of its COVID-19 vaccines at lower prices, so the firm should not face allegations that it is trying to profit from the pandemic.

What’s Next For Pfizer Stock?

Pfizer has recently reported its second-quarter earnings. The company reported revenue of $19 billion and GAAP earnings of $0.98 per share, easily beating analyst estimates on both earnings and revenue.

Pfizer has increased its full-year 2021 revenue guidance from $70.5 billion – $72.5 billion to $78 billion – $80 billion due to the strength of its COVID-19 vaccine business.

The company also stated that it was confident that a booster dose of its vaccine would protect people against the Delta variant of coronavirus. Most countries have not decided whether they will use booster shots of coronavirus vaccines, but the likelihood of this scenario is increasing as the spread of the Delta variant has led to an increase in the number of new coronavirus cases in countries with successful mass vaccination programs.

Solid pricing power and strong demand for coronavirus vaccines will continue to serve as bullish catalysts for Pfizer shares in the upcoming weeks. The stock is trading at about 13 forward P/E which is cheap for the current market environment, and the company’s shares have decent chances to continue their upside move.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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