Merck & Company, the Healthcare sector company, was revisited by a Wall Street analyst on August 26. Analyst Daina Graybosch from Leerink Partners maintained a Buy rating on the stock and has a $107.00 price target.
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Daina Graybosch has given her Buy rating due to a combination of factors related to the positive developments in Merck & Company’s clinical trials. The successful results from the HARMONi-A study, which demonstrated a statistically significant overall survival benefit for ivonescimab combined with chemotherapy over chemotherapy alone, highlight the potential of the VEGF-A/PD-(L)1 class in treating certain types of lung cancer. This success suggests that the immune mechanism may play a significant role in the clinical benefits observed, particularly in settings that are typically less responsive to immune-based treatments.
Daina Graybosch also notes that the improvement in overall survival could be attributed to the durable benefits of VEGF-A-antagonism, which ivonescimab provides without the typical drawbacks associated with other treatments like bevacizumab. The positive outlook for Merck is further supported by the potential for bispecifics to serve as a backbone for novel combinations in global studies, positioning companies like Merck to maximize value. These factors collectively contribute to the Buy rating for Merck & Company’s stock.
In another report released on August 19, Goldman Sachs also maintained a Buy rating on the stock with a $94.00 price target.