Pfizer Stock Hits 9-Month High As Analysts Dismiss Trump Drug Deal’s Financial Risk; Retail Stays ‘Extremely Bullish’

Pfizer shares rose nearly 7% on Wednesday, hitting their highest level since January, after Bank of America's research arm and other analysts downplayed the financial impact of the company’s new drug pricing deal with U.S. President Donald Trump.

Bank of America said the timing of the announcement may have caught investors by surprise, but the details were largely anticipated. The firm noted that both the White House and Pfizer statements lacked specifics and described the agreement as a loose set of measures unlikely to materially affect Pfizer’s earnings while giving the administration a political advantage. It maintained a ‘Neutral’ rating and a $28 price target on the stock.

Announced Tuesday, the deal includes steep price cuts on several widely used drugs, with some as high as 100%, along with a $70 billion investment commitment from Pfizer to expand its U.S. manufacturing footprint. The company also secured a three-year exemption from proposed pharmaceutical tariffs as the administration unveiled TrumpRX, a new government platform designed to sell discounted drugs directly to consumers.

BMO Capital Markets’ Evan Seigerman said the structure of the agreement could serve as a model for other pharmaceutical firms such as Eli Lilly, helping them cooperate with policymakers while avoiding strict price controls or tariffs. 

Cantor Fitzgerald’s Carter Gould said the rally in drug stocks reflected investor relief that the deal was more symbolic than financially disruptive, as Pfizer left its earnings guidance unchanged. Raymond James analyst Chris Meekins said the TrumpRX initiative was unlikely to reduce consumer costs unless paired with broader insurance reforms significantly, calling the outcome favorable for the industry.

The deal coincided with the Trump administration’s release of final guidance for the third round of Medicare drug price negotiations, which continued a program initiated under the Biden administration's Inflation Reduction Act, according to a Bloomberg report.

The Centers for Medicare & Medicaid Services said the new framework aims to make the process “more transparent, more workable for manufacturers, and more responsive to the needs of Medicare beneficiaries,” with negotiations for up to 15 additional drugs beginning in 2026 and new prices taking effect in 2028.

On Stocktwits, retail sentiment for Pfizer was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user said Pfizer looked ready to continue its move toward $30, while another noted the stock’s single-digit P/E made it “so cheap” and predicted it could rise to $32.

Pfizer’s stock has risen 8.1% so far in 2025.

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