Analyst Daina Graybosch of Leerink Partners maintained a Buy rating on Merck & Company, boosting the price target to $114.00.
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Daina Graybosch’s rating is based on several strategic factors that bolster confidence in Merck & Company’s future performance. The company is actively diversifying its portfolio beyond oncology, investing in innovative and differentiated assets across various sectors such as cardiometabolic, infectious diseases, cardiopulmonary, ophthalmology, and hematology. This diversification is expected to mitigate the impact of the Keytruda loss of exclusivity (LoE), which is anticipated to be a manageable challenge rather than a significant setback.
Additionally, Merck has several upcoming catalysts that are likely to drive stock appreciation. These include the Phase 2 CADENCE trial for Winrevair in pulmonary hypertension, the Phase 3 BRUNELLO trial for diabetic macular edema, and updates from the CD388 flu prophylaxis trial. Furthermore, Merck’s strategic planning around Keytruda, including potential extended exclusivity and a volume strategy with the subcutaneous version, Qlex, positions the company well against biosimilar competition. These factors collectively contribute to Graybosch’s Buy rating for Merck’s stock.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $120.00 price target.
Based on the recent corporate insider activity of 27 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.