Analyst Terence Flynn from Morgan Stanley maintained a Hold rating on Merck & Company (MRK – Research Report) and keeping the price target at $106.00.
Terence Flynn’s rating is based on a combination of factors, including the recent data from the Phase 3 Zenith trial of Winrevair, which showed a significant reduction in morbidity and mortality in patients with pulmonary arterial hypertension (PAH). Despite these positive results, the overall impact on Merck’s stock is tempered by the fact that the key secondary endpoint of overall survival did not meet the required threshold for statistical significance.
Additionally, while the safety profile of Winrevair was consistent with previous studies, the market potential and sales projections for the drug are already factored into the current stock price. As a result, Flynn sees limited upside potential in the near term, leading to a Hold rating. This suggests that while Merck’s developments are promising, they may not be enough to drive significant stock price appreciation at this time.
MRK’s price has also changed moderately for the past six months – from $114.740 to $87.120, which is a -24.07% drop .