Merck initiated with a Market Perform at Bernstein

Bernstein initiated coverage of Merck with a Market Perform rating and $115 price target The firm initiated coverage on U.S. biopharma and is optimistic on the outlook for the industry. However, in-line sector stock performance versus the S&P 500 Index and historically average valuations combined with increasing industry pressures suggest that investment outcomes will be more tied to specific company opportunities, the analyst tells investors in a research note. Bernstein says the market “clearly rewards future revenue growth – as a marker of portfolio reinvention.” It believes commercial realization will be increasingly constrained by concentration of competition and growing regulatory pressures.