PFE, LLY, MRK Stocks In Focus: Cantor Raises Price Targets On Pharma Behemoths, But Flags Growth Concerns For Pfizer

• Pfizer plans to close the penicillin department at its Catania facility in Italy, putting about 330 jobs at risk out of a workforce of 550, according to major Italian trade unions, Filctem CGIL, Femca CISL, and Uiltec UIL.  
• Cantor raised Merck’s full-year 2027 revenue and earnings forecasts could be revised down.
• The firm said it sees potential benefits from Lilly’s oral obesity drug Foundayo.

Shares of Pfizer (PFE), Eli Lilly (LLY) and Merck (MRK) were in focus on Thursday after Cantor Fitzgerald raised its price targets on all three pharmaceutical giants, citing upcoming drug trial results, earnings expectations and growth opportunities.

At the time of writing, MRK and PFE shares edged lower in pre-market trading while LLY shares were largely unchanged.

Pfizer Faces Growth Questions As Job Cuts Loom

Cantor raised Pfizer’s price target to $28 from $27 and maintained a ‘Neutral’ rating, according to The Fly. The firm said Pfizer’s near-term performance largely depends on results from the Mevpro-1 trial of Mevrometostat, an experimental prostate cancer drug. The company expects results from the Phase 3 trial later this year.

However, the firm said questions remain about the company’s longer-term revenue growth and its ability to sustain its dividend.

Pfizer raised its full-year 2026 revenue outlook to $60.5 billion to $62.5 billion, citing stronger sales of non-COVID products, although declining COVID-related revenue remains a headwind.

Cantor also noted that Pfizer’s shares have recently outperformed its pharmaceutical peers, supported by growing optimism about its drug pipeline, which includes experimental treatments for cancer, obesity, infectious diseases, and inflammation.

Separately, Pfizer plans to close the penicillin department at its Catania facility in Italy, putting approximately 330 jobs at risk out of a workforce of 550, according to major Italian trade unions, Filctem CGIL, Femca CISL, and Uiltec UIL. 

Merck Faces Mixed Outlook Ahead Of Cancer Data

Cantor raised Merck’s price target to $145 from $120 while maintaining a ‘Neutral’ rating, but added that the company’s full-year 2027 revenue and earnings forecasts could be revised down.

Wall Street expects the company to post revenue of roughly $70.13 billion and earnings of $9.41 per share, according to Fiscal.ai.  

However, Cantor said several key cancer-drug presentations at the upcoming European Society for Medical Oncology (ESMO) Congress could support Merck’s shares, although already-high expectations for the data may limit further upside.

Lilly's Weight-Loss Franchise Remains A Growth Driver

Cantor raised Lilly’s target to $1,440 from $1,410 and maintained an ‘Overweight’ rating. LLY is the only stock in the cohort that has significant upside potential, according to Cantor.

The firm expects U.S. sales of its blockbuster weight-loss drug Zepbound to modestly exceed estimates, supported by continued overseas demand for diabetes treatment Mounjaro. It also sees potential benefits from Lilly’s oral obesity drug Foundayo.

Retail’s Take On LLY, PFE And MRK

Retail sentiment on Stocktwits surrounding LLY turned ‘bullish’ from ‘neutral’ a day earlier, while sentiment for PFE and MRK trended in the ‘neutral’ and ‘bearish’ territories, respectively.

All the stocks are in the green this year, with LLY and PEF climbing nearly 11% each, while MRK has jumped more than 36%.

Also read: Why Is ARGX Stock Plunging Today?

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