UPDATE: Bernstein Downgrades Merck & Co. on Negative Outlook
In a report published Monday, Bernstein Research analyst Tim Anderson downgraded the rating on Merck & Co. (NYSE: MRK) from Outperform to Market Perform, and lowered the price target from $53.00 to $50.00.
In the report, Bernstein Research noted, “We are downgrading Merck to Market-Perform from Outperform. From a pure financial perspective, 2013 is not likely going to be a great year - revenues and EPS should be down vs 2012 as prior generic expiries continue to wash through the model. Furthermore, following a string of pipeline setbacks and now the lowering of 2013 guidance twice since the start of the year, a ‘crisis in confidence' among investors has been building. While expectations and valuation are now lower, many investors continue to view MRK as a good R&D company because of its historic good legacy (this has been part of our original investment case too). Accordingly, pipeline execution will be critical to the story, but in the nearer-term it is hard to identify many meaningful pipeline catalysts.”
Merck & Co. closed on Friday at $47.29.
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