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UPDATE: Deutsche Bank Initiates Coverage On Merck

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Deutsche Bank initiated coverage of Merck (NYSE: MRK) with a Hold rating and price target of $63.

Analyst Gregg Gilbert outlined reasons for the initiation:

  • Merck has established base businesses, with a track record of returning cash to shareholders.
  • Merck has potential multi-billion dollar products in the pipeline awaiting completion of later stages of phase two and three trials.
  • Merck is becoming well-positioned in the Hepatitis C (HVC) space with recent acquisition of Idenix (NASDAQ: IDIX). Gilbert stated,”Merck could differentiate itself with a product that is easier to use and has shorter treatment duration to gain market share.”

Analysts indicate upside risk will come from higher-than-expected peak sales for pembro and its HCV franchise.

Downside risks include approval delay for pembrolizumab in advanced melanoma or negative data from the C-SWIFT trial for HCV genotypes.

Latest Ratings for MRK

DateFirmActionFromTo
Jan 2015Deutsche BankMaintainsHold
Jan 2015BarclaysUpgradesUnderweightEqualweight
Jan 2015JefferiesMaintainsHold

View More Analyst Ratings for MRK
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Gregg GilbertAnalyst Color Health Care Initiation Analyst Ratings General

 

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