Merck & Co.: Strong Buy Rating Backed by Promising Oncology Pipeline and Strategic Initiatives

J.P. Morgan analyst Chris Schott has maintained their bullish stance on MRK stock, giving a Buy rating on May 31.

Chris Schott has given his Buy rating due to a combination of factors including Merck & Company’s promising oncology pipeline and strategic development initiatives. The company has a diverse array of mid to late-stage oncology assets that are not yet reflected in their current valuation but have the potential to lead to new product launches in the next three to five years. Notably, Merck is advancing its TROP-2 ADC with 14 Phase 3 trials, nine of which are first-in-class opportunities, showcasing the company’s innovative approach and differentiation in the market.
Additionally, Merck is progressing with its PD1xVEGF bispecific antibody, particularly in China, to gather insights for future U.S. studies. This asset has shown meaningful clinical benefits in terms of progression-free survival across various indications. Furthermore, the company’s strategy regarding SubQ Keytruda pricing in the context of biosimilars suggests limited impact from potential price negotiations, indicating a strong position in the market. These strategic moves underscore Merck’s robust potential for growth and innovation, justifying the Buy rating.

In another report released on May 31, Jefferies also maintained a Buy rating on the stock with a $138.00 price target.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MRK in relation to earlier this year.