In a report released today, Chris Schott from J.P. Morgan maintained a Buy rating on Merck & Company, with a price target of $130.00.
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Chris Schott has given his Buy rating due to a combination of factors that highlight Merck & Company’s strong growth potential and favorable risk/return profile. Despite some challenges, such as the headwinds faced by Gardasil in international markets, the company is expected to see continued growth driven by Keytruda. Keytruda’s performance is anticipated to offset these challenges, with significant contributions from new indications and ongoing uptake in metastatic settings.
Additionally, Merck’s diverse portfolio, which includes animal health and vaccines, provides a solid foundation for future growth. The company’s robust cash flow generation and margin expansion opportunities further strengthen its investment appeal. With a projected top-line compound annual growth rate in the high-single digits over the next five years and significant capital deployment options, Merck is well-positioned for multiple expansion. Schott’s price target for December 2025 reflects these positive dynamics, based on a discounted cash flow methodology that considers both existing products and potential pipeline contributions.
In another report released on July 2, UBS also reiterated a Buy rating on the stock with a $105.00 price target.