Merck (MRK) PT Lowered to $102 at Goldman Sachs

Goldman Sachs analyst Terence Flynn lowered the price target on Merck (NYSE: MRK) to $102.00 (from $108.00) while maintaining a Buy rating.

The analyst comments "In conjunction with our initiation on Organon, we update our estimates for MRK to reflect the removal of OGN revenues/costs, as well as the $9bn special dividend from OGN. Our 2021-24 EPS estimates go to $5.69/$6.33/$6.85 from $6.70/$7.13/$7.48, which are in-line with our most recent pro forma for RemainCo (see our previous note here). We also raise our P/E multiple by a half-turn to 15.5x from 15x prior, to reflect the roll-off of the lower-multiple OGN business. In addition, we roll our EPS forward 3 months (our PT is now based off a 50/50 blend of 2022-23 EPS), and update our model for the 10Q. Our price target goes to $102 from $108 on the changes."

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