Why Pfizer Shares Are Trading Higher Today

Pfizer Inc PFE is trading higher Monday after UBS upgraded the stock and raised its price target.

UBS analyst Colin Bristow upgraded Pfizer from a Neutral rating to a Buy rating and raised the price target from $52 to $60.

Bristow expects Pfizer's oral antiviral for COVID-19, Paxlovid, will generate at least $14 billion in sales next year, which would be about 40% above consensus estimates.

Pfizer also announced it will acquire Arena Pharmaceuticals Inc ARNA for $100 per share.

The all-cash transaction represents a total equity value of approximately $6.7 billion. The boards of directors of both companies have unanimously approved the transaction.

"The proposed acquisition of Arena complements our capabilities and expertise in Inflammation and Immunology, a Pfizer innovation engine developing potential therapies for patients with debilitating immuno-inflammatory diseases with a need for more effective treatment options," said Mike Gladstone, global president and general manager of Pfizer Inflammation and Immunology.

Arena Pharmaceuticals is a clinical-stage biotechnology company targeting G-protein-coupled receptors by developing innovative potential therapies for the treatment of several immuno-inflammatory diseases. 

Related Link: Why Arena Pharmaceuticals Stock Is Soaring Today

Pfizer is one of the world's largest pharmaceutical firms, with annual sales close to $50 billion (excluding COVID-19 vaccine sales).

PFE Price Action: Pfizer has traded as high as $55.70 and as low as $33.36 over a 52-week period.

The stock was up 4.72% at $55.27 at time of publication.

Photo: x3 from Pixabay.