Bank of America Securities analyst Tim Anderson reiterated a Buy rating on Merck & Company (MRK – Research Report) yesterday and set a price target of $99.00.
Tim Anderson has given his Buy rating due to a combination of factors that highlight Merck & Company’s potential for growth and undervaluation. The company’s Q1 results showed a slight revenue increase and an EPS boost, aided by a lower tax rate, which aligns with consensus expectations. Despite some minor impacts from tariffs and foreign exchange, the overall financial performance remains solid.
Furthermore, Anderson believes that Merck’s stock is undervalued considering its growth prospects and robust pipeline. Although there are concerns about the Gardasil overhang and potential competition for Keytruda, the stock’s current valuation does not reflect its long-term growth potential. Anderson maintains a price objective of $99, suggesting significant upside from the current price, and views the stock as an attractive investment opportunity despite short-term challenges.
According to TipRanks, Anderson is a 4-star analyst with an average return of 8.8% and a 69.86% success rate. Anderson covers the Healthcare sector, focusing on stocks such as Gilead Sciences, Eli Lilly & Co, and Pfizer.
In another report released on April 21, Goldman Sachs also maintained a Buy rating on the stock with a $103.00 price target.