Bank of America Reiterates Buy Rating, $47 PT on Merck & Co. Ahead of Potential Approvals

In a report published Monday, Bank of America analyst Gregg Gilbert reiterated a Buy rating and $47.00 price target on Merck & Co.

. In the report, Gilbert noted, “We upgraded MRK to Buy (from Neutral) on 3/4/13 on the basis that the recent stock pullback (due to the odanacatib filing pushback, failure of HPS2-THRIVE and likely investor trepidation ahead of the IMPROVE-IT interim analysis) had created an attractive entry point. With the IMPROVE-IT interim look out of the way, and the odanacatib (osteoporosis) filing pushed to '14, investors may begin to focus on MRK's ‘13 pipeline catalysts. MRK has five drugs under regulatory review (see Table 1), and we only include revenue for two of these late-stage assets (Bridion and suvorexant). Some news on the PD-1 cancer program and BACE inhibitor for Alzheimer's could also boost interest. Beyond the potentially underappreciated pipeline, we continue to like MRK's above-average dividend (3.9% yield) and track record of returning cash.” Merck & Co. closed on Friday at $43.90.