Merck price target lowered to $112 from $118 at BofA

BofA lowered the firm’s price target on Merck (MRK) to $112 from $118 and keeps a Buy rating on the shares. Q4 results were “decent,” but 2025 guidance was “light” as the “storm clouds” brewing with Gardasil that the firm has flagged previously have arrived. Prior 2030 guidance was withdrawn and Merck will stop selling the product in China in the first half until inventories normalize, notes the analyst, who adds that “the problem is that this thrusts Keytruda IRA/LOE into renewed focus.” The firm, which has previously argued that the stock’s valuation was “too low for an above-average growth profile,” still views the shares as undervalued, but adds that “the dust may need to settle in the very near-term” after this setback.