Market Overview

UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Merck & Co.

Share:
Related MRK
Pharma Stock Roundup: Pfizer Mulls Options For Consumer Healthcare, Eli Lilly's Pipeline Setback
Bank Of America Sees NewLink Genetics As 'Undervalued'
Inverness Counsel Inc Buys CVS Health Corp, JPMorgan Chase, Corning Inc, Sells Dover Corp, ... (GuruFocus)

In a report published Monday, BMO Capital Markets reiterated its Market Perform rating on Merck & Co. (NYSE: MRK), and raised its price target from $46.00 to $50.00.

BMO Capital noted, “Given all the headwinds Merck is facing, this was an impressive quarter. Excluding the Singulair patent expiration and negative Fx impact, Merck grew revenues 7% y/y. Many of the growth drivers, such as the Januvia and vaccines franchises, have long patent lives; thus, once the impact of Singulair wears off in 2013, Merck's revenues should return to growth, which coupled with an improved cost structure should lead to higher EPS growth. In the meantime, the pipeline is advancing well. In short, Merck is effectively executing its strategy. The key risk is potentially negative results from the IMPROVE-IT trial, likely in 2014, which could lower sales of the $4.3B Zetia/Vytorin franchise until loss of exclusivity in 2017. However, by that time Merck's late-stage pipeline (e.g. Odanacatib) should dampen the impact, and the focus should shift to the potentially transformative late-stage products, like Anacetrapib and the BACE inhibitor in Alzheimer's.”

Merck & Co. closed on Friday at $46.15.

Latest Ratings for MRK

DateFirmActionFromTo
Oct 2017BMO CapitalMaintainsOutperform
Sep 2017Credit SuisseMaintainsOutperform
Aug 2017Credit SuisseMaintainsOutperform

View More Analyst Ratings for MRK
View the Latest Analyst Ratings

Posted-In: BMO Capital MarketsAnalyst Color Price Target Analyst Ratings

 

Related Articles (MRK)

View Comments and Join the Discussion!
Loading...

Partner Center

Loading...