(News Bulletin 247) – Jefferies remains Buy on Merck shares and maintains its target price of $130.
‘From a macro perspective, Merck has a better earnings-per-share growth profile than its large-cap peers,’ said the broker for whom Merck’s flagship drug, Keytruda, is ‘poorly rated by analysts’.
“Consensus estimates that the Keytruda yield loss in 2028 will cause a $30 billion problem for Merck, but we think Merck is closer to solving that problem than people think,” Jefferies continues.
Merck’s cardiovascular segment is ‘a key part’ of Jefferies’ valuation, with peak sales estimated at ‘$10 billion’.
Finally, Gardasil ‘has a great growth opportunity in China and stable growth levels in the United States’, concludes the analyst.
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