Organon price target lowered to $10 from $15 at Morgan Stanley

Morgan Stanley analyst Terence Flynn lowered the firm’s price target on Organon (OGN) to $10 from $15 and keeps an Equal Weight rating on the shares after the company announced plans to delever quicker to do deals, but at the expense of a significant dividend cut. Organon reset its capital allocation priorities by cutting the dividend and is focused on paying down debt so that it can ultimately bring in additional assets, notes the analyst, who points out that the firm’s estimates do not account for any potential business development activity.