In a report released yesterday, Mohit Bansal from Wells Fargo maintained a Hold rating on Merck & Company, with a price target of $97.00.
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Mohit Bansal’s rating is based on anticipated challenges facing Merck & Company, particularly with its key products Gardasil and Keytruda. The analyst foresees continued weakness in vaccine sales, with Gardasil facing significant headwinds in China and Japan, which are not fully reflected in consensus estimates. Additionally, Keytruda’s international sales are expected to encounter pricing pressures, particularly in Argentina and the EU, leading to potential revenue shortfalls compared to market expectations.
Moreover, the report highlights that Gardasil’s international sales need to be adjusted downward due to the cessation of sales in China and the conclusion of a catch-up opportunity in Japan. This adjustment is expected to result in a notable decline in quarterly sales figures. In the US, while there is some growth in demand, it is not sufficient to offset the international challenges. These factors combined lead to a cautious outlook, justifying the Hold rating on Merck’s stock.
According to TipRanks, Bansal is a 4-star analyst with an average return of 3.3% and a 51.61% success rate. Bansal covers the Healthcare sector, focusing on stocks such as Gilead Sciences, Pfizer, and Biogen.