Analyst Carter Gould from Cantor Fitzgerald has begun coverage of Merck (MRK, Financial), assigning a Neutral rating and setting a price target of $85. The analyst notes that Merck's shares have noticeably underperformed over the past year, primarily due to recalibrated expectations surrounding China Gardasil. This has intensified focus on the concentration risks associated with Keytruda and the company's growth outlook after 2028.
Gould forecasts continued mid-single-digit revenue decline for Merck between 2028 and 2034, even while factoring in contributions from a range of pipeline products including Winrevair, enlicitide, tulisokibart, clesrovimab, islatravir, and sacituzmab tirumotecan. Despite these potential product developments, the firm anticipates challenges in maintaining robust top-line growth post-Keytruda's dominance.
