Jefferies Downgrades Merck (MRK) to Hold

October 11, 2013 7:52 AM EDT
Get Alerts MRK Hot Sheet
Price: $60.33 --0%

Rating Summary:
    16 Buy, 6 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 20 | New: 10
Trade MRK Now!
Join SI Premium – FREE
Jefferies downgraded Merck (NYSE: MRK) from Buy to Hold with a price target of $50.00 (from $53.00).

"We have downgraded Merck & Co. to Hold from Buy as although it has executed two of the three potential drivers that we saw for the shares (share repurchases and cost-saving), the magnitude of both was less than we had hoped for," analyst Jeffrey Holford comments. "We still believe that the company is likely to divest or JV either (or both) its Consumer or Animal Health units, but this alone is not reason enough for us to leave the shares on a Buy rating when considering the pressures on the base business (Januvia growth, poor R&D productivity). Furthermore, whilst we appreciate the potential of its anti-PD-1 asset, it is a competitive area and the risk-adjusted peak sales of $4bn carried for the product in our model adequately reflects its potential in our view."

For an analyst ratings summary and ratings history on Merck click here. For more ratings news on Merck click here.

Shares of Merck closed at $47.49 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst PT Change, Downgrades

Related Entities

Jefferies & Co

Add Your Comment