Opinions The Monthly Gems by Allan Tong
Merck & CompanyMRKTOP PICKOct 03, 2022
Stock price when the opinion was issued
As of Jun 09, 2026. Market Open.
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Today's downward move isn't all that outsized. There's been more clarity on US drug pricing. Seeing a bit of market exhaustion, as US pharma is trading at huge premiums relative to their own history.
Rerating from pricing clarity has already been baked in. R&D pipeline in the sector is a mixed bag, doesn't trust it.
He bought it for their strong drug pipeline and is happy to stay here.
Gordon ReidOne of her holdings in the space. This higher-quality name has both growth and less execution risk.
Brianne Gardner
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Pharmas are coming back. Political policy is improving. Keytruda makes up a lot of revenues but faces a patent cliff in 2028. But MRK has invested a lot in new drugs and been buying companies strategically.
(Analysts’ price target is $123.89)
Julien Nono-WomdimPremium content
They have a good pipeline that will help offset the loss of their major Keytruda drug when it goes off-patent. MRK is good at buying and tucking in companies. Their 2025 chart wasn't that great until the end of the year when the sector caught a bid.
Gordon Reid
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Some concrete good news: Recently, Merck won a patent infringement suit against Viatris that will prevent the drugs Januvia and Janumet from seeing generic versions until May 2026.
As you watch the trial results of these various drugs, you will collect a 3.18% dividend yield and sleep well at a 0.34 beta. The street has 10 buys, two holds and a $100.64 price target.