Why Pfizer Shares Keep Moving Higher?

Pfizer Video 16.04.21.

Pfizer Shares Gain Ground After CEO Says People May Need Booster COVID-19 Shots

Shares of Pfizer gained additional upside momentum after the company’s CEO Alfred Bourla stated that a third shot of the vaccine may be needed within 12 months. He also stated that annual vaccination against coronavirus may be required in the future.

If coronavirus vaccination becomes a source of recurring revenue for Pfizer and other vaccine producers, analysts will have to adjust their earnings estimates to the upside. At this point, it is not clear whether people will need regular vaccination after they receive two shots of COVID-19 vaccine, and analysts are rather conservative in their estimates.

In Pfizer’s case, analysts expect that the company will report earnings of $3.32 per share in 2021 and $3.04 per share in 2022. If analysts come to the conclusion that the world will have to order more doses of the vaccine from Prizer in 2022 and beyond, earnings estimates may be changed materially.

What’s Next For Pfizer?

The recent trading sessions were very successful for producers of messenger RNA – based vaccines – Pfizer/BioNTech and Moderna. The recent news about potential blood clots linked to AstraZeneca and Johnson & Johnson vaccines have provided material support to mRNA-based vaccine makers.

Today, Australia reported its first death from a blood clot which was likely linked to AstraZeneca vaccine. While researchers say that the risk of blood clots from COVID-19 is much higher than the risk of blood clots from vaccines, AstraZeneca and Johnson & Johnson vaccines got a lot of bad press in recent days which will make it harder for governments to order them for the next year and beyond.

In this light, traders may continue to bet that producers of mRNA-based vaccines like Pfizer will gain market share which is bullish for their stocks.

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