MKM Partners Upgrades Merck (MRK) to Buy

November 20, 2012 10:41 AM EST
Get Alerts MRK Hot Sheet
Price: $61.17 -0.5%

Rating Summary:
    16 Buy, 6 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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MKM Partners upgraded Merck (NYSE: MRK) from Neutral to Buy with a price target of $51.00 (from $47.00).

The firm comments, "Between 2013 and 2017 we expect Merck to potentially launch 12 new products; the greatest number out of its U.S. peers. While the expected contribution from these potential launches is about average for the U.S. group, we think higher-than-average new product news flow could help Merck’s share performance over the next several years. Merck also has significantly below average patent exposure (14% of current sales) through 2017, even with the expected losses of Zetia and Vytorin in 2016. The net of these rankings implies that Merck is significantly undervalued on a forward looking basis and leads us to upgrade the company to a Buy rating."

The firm increased 2016 EPS estimate from $3.95 to $3.96 and rolling out a 2017 EPS estimate of $4.01.

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 $43.34 yesterday.

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