Shares of Pfizer Inc. PFE, +2.02% rallied 2.5% in afternoon trading Wednesday, after BofA Securities analyst Geoff Meacham turned bullish on the drug maker, saying its COVID-19 pill Paxlovid could alleviate concerns over a “cluster of patent expirations” starting in 2025. Meacham raised his rating to buy, after being at neutral since he started covering Pfizer in October 2020, and raised his stock price target to $70 from $59. He said the Paxlovid rollout “should provide more durable revenues and robust cash flow, the latter of which expands the menu of strategic options around the [loss of exclusivity] period.” The upgrade comes a day after Pfizer said the U.S. government doubled its order for treatment courses of Paxlovid to 20 million, which are to be delivered by the end of September. Pfizer’s stock has rallied 32.1% over the past three months, while the SPDR Health Care Select Sector ETF XLV, -0.71% has tacked on 9.7% and the S&P 500 SPX, -1.94% has gained 9.9%.
