Goldman Sachs analyst Asad Haider has maintained their bullish stance on MRK stock, giving a Buy rating yesterday.
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Asad Haider has given his Buy rating due to a combination of factors influencing Merck & Company’s stock. One of the primary reasons is the current market valuation, which Haider believes is overly pessimistic, particularly concerning the company’s terminal growth rate and the value of its pipeline. The market seems to be undervaluing Merck’s Animal Health business, which is generating significant revenue and is expected to grow further, thus presenting a mispricing opportunity for investors.
Additionally, despite some uncertainties in the business development and merger and acquisition strategies, Haider sees potential for stock recovery as Merck overcomes previous challenges, such as the China Gardasil headwinds. The focus is shifting towards executing new product cycles and upcoming data from ongoing trials, which could positively impact the stock. Furthermore, the existing vaccine-related uncertainties appear to be factored into the current stock price, making it potentially more responsive to positive developments in other areas of Merck’s pharmaceutical business.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $112.00 price target.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is neutral on the stock.