The stock is moving confidently away from annual lows after the U.S. Food and Drug Administration (FDA) accepted a joint application from Pfizer Inc. and biopharmaceutical company Arvinas Inc. to register a new breast cancer treatment. Against this backdrop, several analyst firms have upgraded their recommendations on Pfizer shares: Morgan Stanley raised its price target from $32.00 to $33.00 while maintaining an “equal-weight” rating, and Cantor Fitzgerald increased its range to $24.00–$38.00 with a neutral outlook. Considering that the current quote is at 25.00, analysts see upside potential for Pfizer shares by year-end.

Regarding the company’s financial health, the situation is improving: the Q2 earnings report published earlier this month showed revenue of $14.70 billion, exceeding both the forecast of $13.47 billion and the $13.30 billion recorded a year earlier. Earnings per share reached $0.78 compared with $0.57 and $0.60, respectively.

The company’s board of directors approved a third dividend payment this year, scheduled for September 2 at $0.43 per share. The quarterly yield stands at 6.79%, far above the sector median of 2.88%.

Support and Resistance Levels

On the daily chart, prices are correcting, trading slightly below the resistance line of the upward channel with dynamic boundaries of 27.00–24.00.

Technical indicators maintain a steady buy signal: the fast EMAs of the Alligator indicator remain just above the signal line with a narrow range of fluctuations, while the AO histogram is already above the zero level.

Support levels: 24.20, 22.60.

Resistance levels: 25.70, 27.60.

Trading Scenarios

If growth continues and the price consolidates above the resistance level of 25.70, long positions with a target of 27.60 will be relevant. Stop-loss — 25.00. Implementation period: 7 days or more.

If decline continues and the price consolidates below the support level of 24.20, short positions with a target of 22.60 will be relevant. Stop-loss — 25.00.

Pfizer

Scenario
Timeframe: Weekly
Recommendation: BUY STOP
Entry Point: 25.75
Take Profit: 27.60
Stop Loss: 25.00
Key Levels: 22.60, 24.20, 25.70, 27.60

Alternative Scenario
Recommendation: SELL STOP
Entry Point: 24.15
Take Profit: 22.60
Stop Loss: 25.00
Key Levels: 22.60, 24.20, 25.70, 27.60