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Tim Smith
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NEW YORK CITY - MAY 2015: Metal plate logo of Pfizer in his head

Shares in biopharma giant Pfizer Inc. (PFE) rallied 3% on Monday after a federal official said the U.S. Food and Drug Administration (FDA) will authorize Pfizer’s COVID-19 vaccine to teenagers aged 12 to 15 by next week. Moreover, the official, speaking on the condition of anonymity, said the agency is expected to approve the drug maker’s two-dose vaccine to even younger children later this year.

The announcement comes a month after a clinical trial conducted by the company showed 100% efficiency in around 2,000 early teens. Currently, the FDA has only approved Pfizer’s vaccine for emergency use in the United States for people aged over 16. The country has ordered 300 million vials of the drug maker’s shot by the end of July and administered 131 million doses so far.

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As of May 4, 2021, Pfizer stock has a market value of $222.2 billion, issues an attractive 4.04% dividend yield, and trades around 6% higher over the past 12 months. Since the start of the year, the shares have added 8.2%, just shy of the S&P 500’s 11.62% gain over the same period. From a valuation standpoint, the stock trades at 12 times forward earnings, 7.7% below its five-year average multiple of 13 times.

Wall Street View

Last month, SVB Leerink analyst G. Porges lowered the investment firm’s price target on the stock to $39 from $40 but maintained his ‘Market Perform’ rating. Porges expects the pharmaceutical giant to post current quarter EPS of 80 cents, up a penny from his previous forecast.

Elsewhere, the stock receives 6 ‘Buy’ ratings and 15 ‘Hold’ ratings. Currently, no broker recommends selling the shares. Coverage has turned slightly more positive in recent months as blood clot concerns continue to plague rival COVID-19 vaccine makers. Twelve-month price targets range from a high of $53 to Street-low $36, with the median pegged at $39.

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Technical Outlook and Trading Tactics

Pfizer shares staged an impressive breakout from a pennant pattern on above-average volume Monday, indicating further upside continuation in upcoming trading sessions. Furthermore, the 50-day simple moving average (SMA) crossed back above the 200-day SMA this week to form a bullish “golden cross” buy signal.

Active traders who take a long position here should target a move back up to the December 2020 high at $43.08 and manage risk by placing a stop-loss order somewhere beneath the pennant’s lower trendline.

For a look at today’s earnings schedule, check out our earnings calendar.

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