Pfizer Stock Surges 7% on U.S. Tariff Reprieve, Drug Pricing Deal
Pfizer's stock surged by nearly 7% on Wednesday, outpacing the S&P 500's modest 0.4% gain. This positive trend follows the pharmaceutical giant's recent agreements with the U.S. government and analysts' bullish outlook on the stock market today.
Pfizer has secured a three-year reprieve from planned U.S. tariffs on pharmaceuticals, provided it invests $70 billion in U.S. assets. This move is part of the company's ongoing efforts to strengthen its presence in the American market and the broader stock market.
In a significant development, Pfizer has inked a deal with the U.S. government to reduce prices for certain prescription drugs under the federal Medicaid program. The agreement also ensures 'most favored nation' pricing for new drugs in the U.S. market. The DJIA and the broader stock market have taken note of this pricing deal, which has been met with enthusiasm from analysts. Richard Vosser from JPMorgan Chase & Co. maintains his 'Outperform' rating on Pfizer stock, with a price target of around 30.00 USD by September 2025. Similarly, Evan David Seigerman from BMO Capital reiterates his 'outperform' (buy) rating, setting a $30 price target based on conversations with Pfizer executives about the pricing deal.
Pfizer's stock price has seen a notable increase, driven by a combination of positive analyst ratings and a significant agreement with the U.S. government on drug pricing. The company's strategic investments and pricing deals are expected to have a positive impact on its financial performance and market position in the stock market today.
