The latest trading day saw Merck (MRK) settling at $106.45, representing a +1.13% change from its previous close.
Merck & Co. trades at a deep discount, reflecting market fears over the 2028 Keytruda patent cliff despite robust Q3 2025 results and pipeline momentum. MRK's diversification strategy is gaining traction: Winrevair's rapid ramp to nearly $1B, Capvaxive's $2B+ potential, and subcutaneous Keytruda QLEX extending exclusivity beyond 2028. Financial strength underpins the transition: $17.1B TTM operating cash flow, $18.2B cash, 15-year dividend growth streak, and sector-leading profitability metrics.
Merck is rated a buy, with strong earnings growth, rising cash flow, and balance sheet strength supporting a bullish outlook. Keytruda's double-digit growth and margin expansion drive MRK's profits, but future exclusivity loss in 2028 is a material risk. The company trades at a significant discount—13.8x forward PE, the lowest among peers—while showing the best YoY EBITDA growth and a PEG of 1.23.
Merck earns a cautious "Buy" rating due to an intriguing valuation and clear, somewhat manageable uncertainties, especially post-Keytruda expiry in 2028. MRK's heavy reliance on Keytruda poses risk, but Animal Health growth, pipeline depth, and margin strength offer diversification and optionality. Even in conservative scenarios, MRK could deliver ~7% annualized returns, with potential for double-digit upside if new drugs succeed and margins improve.
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The latest trading day saw Merck (MRK) settling at $106.45, representing a +1.34% change from its previous close.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
The U.S. Food and Drug Administration said on Friday it has granted national priority vouchers to Merck's cholesterol pill and its cancer therapy, making them the latest additions to the fast-track program.
MRK faces looming Keytruda LOE, falling Gardasil sales and pricing pressure, but new products, pipeline and planned cost savings aim to offset the headwinds.
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Merck is reiterated as a buy, with the price target raised to $114, reflecting robust Q3 results and strong technical momentum. Q3 saw non-GAAP EPS of $2.58 (vs. $2.35 consensus) and revenue of $17.3B, driven by Keytruda, Gardasil, and disciplined cost management. Pipeline strength, including 80 Phase III trials and the Verona Pharma acquisition, positions MRK for growth beyond Keytruda's patent cliff.
In the latest trading session, Merck (MRK) closed at $100.69, marking a +1.52% move from the previous day.