Merck & Company, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Terence Flynn from Morgan Stanley maintained a Hold rating on the stock and has a $100.00 price target.
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Terence Flynn’s rating is based on several factors surrounding Merck & Company’s recent activities and future prospects. The acquisition of Cidara, which is consistent with Merck’s strategic focus on acquisitions in the $1 billion to $15 billion range, is seen as a positive move. This acquisition, along with others like Verona and EyeBio, positions Merck well for growth beyond the loss of exclusivity of Keytruda.
However, while the acquisition of Cidara and its promising antiviral agent CD388 is encouraging, the full impact on Merck’s financials will not be realized until the drug’s potential launch in 2028. The projected sales for CD388, while significant, are still subject to the uncertainties of clinical trial outcomes and regulatory approvals. Therefore, the Hold rating reflects a balanced view of the potential opportunities and risks associated with Merck’s current strategic moves.
Flynn covers the Healthcare sector, focusing on stocks such as Gilead Sciences, BioNTech SE, and Eli Lilly & Co. According to TipRanks, Flynn has an average return of 7.2% and a 59.38% success rate on recommended stocks.
In another report released on November 6, Bernstein also maintained a Hold rating on the stock with a $95.00 price target.