Merck initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of Merck (MRK) with an Outperform rating and $142 price target The firm sees the stock’s investor enthusiasm continuing with near-term launches and Phase 3 readouts driving estimate upgrades. The Keytruda loss of exclusivity in late 2028 will be “de-risking” and management’s a track record provides confidence in an early-2030s return to growth versus consensus which has Merck’s erosion well into the mid-2030s, the analyst tells investors in a research note.