Merck price target raised to $125 from $110 at Wells Fargo

Wells Fargo analyst Mohit Bansal raised the firm’s price target on Merck to $125 from $110 and keeps an Overweight rating on the shares. The analyst thinks the setup looks improved for Merck as the Keytruda beat-and-raise story is supplemented by pipeline success. Merck’s focus on its cardiovascular portfolio is paying off with Sotatercept, and Bansal expects incremental data in PAH plus oral PCSK9 data in 2023 to support this. The mRNA-4157 readout in adjuvant melanoma looks promising, with potential for line and indication expansion, he adds. The analyst believes this emerging pipeline could help investors put more terminal value in the DCF as this could reduce Keytruda LOE anxiety. Bansal also included Merck on his firm’s Tactical Ideas list for Q1 2023 as he believes company-specific catalysts should drive stock outperformance during the quarter.