(News Bulletin 247) – Wells Fargo announced on Monday that it had downgraded its recommendation on Merck, which it is bringing back to ‘weight in line’ with a price target lowered from 120 to 115 dollars, explaining that it prefers to stay away from the value after its recent stock market appreciation.
In a note sent to its clients, the research department recalls that its favorable recommendation on the stock was so far based on its perception that the group’s pharmaceutical branch was undervalued, as were its prospects for new treatments. cardiovascular.
But following the stock’s recent rise, which has risen nearly 40% since the start of the year against a 4% decline for the NYSE Arca Pharmaceutical index, he believes that the stock is now correctly valued. based on a 2023 PER of 16x.
In its note, Wells Fargo also mentions a lack of catalysts in the short term, as well as the prospect of a loss of exclusivity on Keytruda immunotherapy, which it believes could limit the potential for revaluation.
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