Opinions Brianne Gardner
Merck & CompanyMRKPAST TOP PICKJul 17, 2024
Brianne GardnerStock price when the opinion was issued
As of Jul 31, 2026. Market Open.
You might be interested:
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium content
Keytruda makes up half of sales, which makes the market nervous, because the drug faces a patent cliff in a few years. Their pipeline is deep, and the acquisitions they made will replenish that pipeline. Even when it goes off-patent, Keytruda will remain a preferred drug by doctors.
Julien Nono-WomdimPremium contentWe reiterate MRK as a TOP PICK. Sales of its top cancer treatment drug, which accounts for the marjority of its revenues, is expected to more than triple its current $8 billion sales by 2028 and it has a long pipeline of new drugs, with plans to release over 20 by 2030. It trades at 23x earnings and supports a ROE of 27%. Cash reserves are growing, while shares are bought back, albeit with an increase in debt. We continue to recommend a stop at $110, looking to achieve $143 -- upside potential of 18%. Yield 2.7%
(Analysts’ price target is $131.56)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
Premium contentPharmas 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
Sector's low beta makes it immune to economic shocks. YOY revenue growth of 9%. New products in pipeline, promising collaborations, JV with Moderna. FDA-approved hypertension drug has great growth prospects. Forward PE of 15.4x, still attractive. Generous dividend yield of over 2%. Another 12% upside from here.
(Analysts’ price target is $140.00)