Pfizer Shares: A 38% Upside Forecast?

Pharmaceutical titan Pfizer has made two significant strategic moves that have captured market attention. The company has announced the acquisition of biotechnology firm Metsera for $7 billion, followed by Guggenheim analyst Vamil Divan setting a $35 price target for the stock. This projection implies a substantial 38% potential increase from current levels. The central question for investors is whether this signals a genuine growth resurgence or represents hopeful optimism after a challenging period for the company.

Pfizer is decisively shifting its strategic focus away from its pandemic-related windfall and building two new core pillars: cancer therapeutics and obesity treatments. This repositioning was underscored by recent FDA approval for PADCEV, a bladder cancer drug used in combination with Keytruda, strengthening its oncology pipeline.

The acquisition of Metsera, finalized on November 13, 2025, represents a major push into the competitive obesity drug market. Pfizer paid $65.60 per share in cash, with former Metsera shareholders eligible for an additional $20.65 per share contingent upon achieving specific developmental milestones. This move positions Pfizer to compete directly with established players like Novo Nordisk and Eli Lilly, who currently dominate this lucrative therapeutic area. Metsera contributes several promising clinical-stage candidates that could provide Pfizer with a critical competitive edge.

$6 Billion Bond Issuance Fuels Ambitions

To finance the Metsera acquisition, Pfizer successfully placed $6 billion in bonds on November 21, 2025. The debt issuance spanned multiple maturities, from short-term three-year bonds to long-dated 40-year securities, with coupon rates ranging between 3.875% and 5.7%. This successful capital raise indicates strong market confidence in Pfizer's turnaround strategy, despite persistent pressure on its share price throughout the year.

Should investors sell immediately? Or is it worth buying Pfizer?

Divided Analyst Sentiment Amid Guggenheim's Bullish Call

On November 24, Guggenheim reinforced its Buy recommendation for Pfizer while raising its price target from $33 to $35. The analyst firm contends that the market is underestimating the potential of Pfizer's strategic reorientation into oncology and obesity therapeutics.

However, the broader analytical community remains cautious. The consensus outlook is generally neutral, with many experts adopting a wait-and-see approach. The prevailing concern is whether Pfizer's multi-billion dollar investments will generate timely returns, requiring the company to demonstrate tangible success from its acquisitions.

Dividend Appeal in a Transition Phase

For income-focused investors, Pfizer offers a compelling nearly 7% dividend yield, ranking among the highest in the pharmaceutical sector. While this provides some downside protection, the fundamental challenge remains: Can Pfizer successfully navigate the decline of its COVID-related business and establish sustainable growth through its new therapeutic focus areas? The company's ability to execute this transition will ultimately determine whether the current optimistic forecasts materialize.