UPDATE: ISI Group Initiates Buy, $45 on Merck

ISI Group initiates its coverage on Merck

with a BUy rating and a price target of $45 as it sees longer-term upside outweighing downside. ISI Group notes, "Merck is a giant company, but we think stock hinges on FOUR key issues: 1. “Good cholesterol” (HDL) pipeline, 2. Odanacatib (phase 3 bone drug), 3. Januvia outcomes trial, 4. IMPROVE-IT trial on Zetia." MRK closed at 37.77 a share on Monday.