UPDATE: Deutsche Bank Initiates Coverage On Merck
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
|Aug 2015||BMO Capital||Upgrades||Market Perform||Outperform|
|Jun 2015||Piper Jaffray||Initiates Coverage on||Neutral|
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