Merck & Company: Hold Rating Maintained Amid Mixed Performance and Revised Guidance

Courtney Breen, an analyst from Bernstein, maintained the Hold rating on Merck & Company. The associated price target remains the same with $95.00.

Courtney Breen has given his Hold rating due to a combination of factors including Merck & Company’s recent financial performance and future outlook. The company reported a slight beat on revenue and a larger beat on earnings per share for the third quarter, which was in line with expectations. However, the guidance for full-year 2025 revenue was slightly revised down, while the earnings per share guidance was marginally raised.
Despite some strong performances in certain areas, such as Capvaxive and Enflonsia, there were mixed results across the business, with slower growth in Keytruda and a one-time headwind affecting Winrevair. The analyst also noted that while the quarter’s performance was decent, it did not significantly alter the view on Merck’s price-to-earnings multiple or its path to earnings growth beyond the Keytruda patent expiration. The Blackstone funding deal was seen as a positive step for managing future expenses, but overall, these factors led to maintaining a Market-Perform rating with a price target of $95.

In another report released on November 3, BMO Capital also maintained a Hold rating on the stock with a $82.00 price target.