I think that Pfizer has a strong pipeline. The aquisition of seagen added many new oncology products that will continue to grow by 14% partially offseting the decline on sales of the covid-19 vaccines. This should keep revenue flat, possibly growing in low to mid single digits in an optimistic scenario. Also, I think they will continue to release many new products that are already in phase 3 of research. If they're able to do this, maintain a 70% operational margin, increase profitability (by cutting costs, expanding margins etc.) and paying down debt, in the long term i see good anual returns (low double digits) from current stock price levels. There is risk for investors in the meantime! Pfizers transition needs to happen fast otherwise Pfizer will have to borrow more money due to the capital nature of the bussiness. Of course, this is not a capital light industry and pfizer debt levels are allready very high when we compare them with free cash flow to equity. Also, there is a risk of a dividend cut wich would harm investors. Investors should be aware of these risks in this turnaround play.

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The user Francisco holds no position in NYSE:PFE. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.