Merck & Company’s Strategic Positioning and Promising Oncology Developments Justify Buy Rating

Jefferies analyst Akash Tewari maintained a Buy rating on Merck & Company (MRK – Research Report) on May 31 and set a price target of $138.00.

Akash Tewari has given his Buy rating due to a combination of factors that highlight Merck & Company’s promising position in the oncology market. The recent data for Sac-TMT in first-line triple-negative breast cancer (TNBC) showed efficacy and safety profiles that are generally in line with existing PD(L)1xVEGF combinations, which are already well-regarded in the field. Sac-TMT demonstrated a strong objective response rate (ORR) and progression-free survival (PFS), making it competitive with other treatments like Ivo and Dato in similar patient populations.
Moreover, Merck’s strategic positioning with both a TROP2 antibody-drug conjugate (ADC) and a PD(L)1xVEGF combination sets it apart from competitors. The company is actively pursuing 14 Phase 3 trials for Sac-TMT, aiming to lead in nine indications and differentiate in others. This aggressive development strategy, coupled with the potential for unique combinations with their LaNova PD1xVEGF, underscores Merck’s commitment to innovation and growth in oncology, justifying the Buy rating.

In another report released on May 30, DBS also maintained a Buy rating on the stock with a $100.00 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.