Merck & Company: Hold Rating Amid Short-Term Challenges and Strategic Uncertainties

BMO Capital analyst Evan Seigerman maintained a Hold rating on Merck & Company (MRK – Research Report) yesterday and set a price target of $82.00.

Evan Seigerman has given his Hold rating due to a combination of factors related to Merck & Company’s current strategic position and future growth prospects. The company’s oncology strategy, while clear and backed by a strong development pipeline, faces short-term challenges that could impact near-term growth. The anticipated conversion of patients to the subcutaneous form of Keytruda is seen as ambitious, with potential delays due to necessary operational adjustments in healthcare facilities.
Furthermore, while Merck’s portfolio includes a significant number of oncology trials, the time required for these to mature and potentially benefit the stock is considerable. Additionally, uncertainties surrounding the Gardasil franchise and the lack of clarity on growth beyond Keytruda’s loss of exclusivity add to the pressure on Merck’s shares. These elements collectively contribute to the Hold rating, reflecting a cautious outlook on the stock’s immediate performance despite its long-term potential.

MRK’s price has also changed moderately for the past six months – from $100.610 to $76.250, which is a -24.21% drop .