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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
Oct 2014JefferiesMaintainsHold
Oct 2014Guggenheim SecuritiesInitiates Coverage onNeutral
Sep 2014JefferiesMaintainsHold

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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