Merck upgraded to Outperform from Market Perform at BMO Capital

BMO Capital upgraded Merck to Outperform from Market Perform with a $132 price target. The analyst cites another strong quarter and a strengthening narrative around growth with recent business development and pipeline success for the upgrade. While the 2029 Keytruda loss of exclusivity is well known, the firm is “highly encouraged” with Merck’s recent steps to address the eventual revenue loss, the analyst tells investors in a research note. All this points to continued multiple expansion relative to peers, says BMO. It thinks Merck is becoming one of the more attractive growth through loss of exclusivity stories in the bio pharma space.