Opinions Paul MacDonald
Merck & CompanyMRKTOP PICKJan 27, 2025
Paul MacDonaldStock price when the opinion was issued
As of Jul 31, 2026. Market Open.
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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
It is best in class. It is a large manufacturer of vaccines but the primary driver is an immune therapy drug that is used across many types of cancers and has 200 ongoing trials. It is coming off patent later in the decade. The vaccine take-up could lead to slower growth but this is a shorter term issue. Buy 24 Hold 8 Sell 0
(Analysts’ price target is $124.60)