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Investing.com - Guggenheim reiterated a Buy rating and $140 price target on Merck & Co. (NYSE:MRK) shares on Thursday.
The firm updated its financial model for Merck ahead of the company’s first-quarter 2026 earnings release and conference call scheduled for April 30. Guggenheim lowered its first-quarter 2026 sales estimate to $16.0 billion from $16.15 billion and adjusted its earnings per share estimate to $1.47 from $1.45. The pharmaceutical giant, with a market capitalization of $304.55 billion, generated $65.01 billion in revenue over the last twelve months and maintains a "GREAT" financial health score according to InvestingPro.
The firm also revised its full-year 2026 estimates, reducing sales projections to $66.29 billion from $66.97 billion and lowering earnings per share estimates to $5.06 from $5.12. The changes reflect decreased revenue estimates for products including Keytruda, Enflonsia, and Ohtuvayre, as well as lower near-term research and development expense projections.
Guggenheim expects the earnings call to focus on sales progression for key products such as Winrevair and Keytruda Qlex, following the implementation of Keytruda Qlex’s permanent J-code on April 1, 2026. The firm also anticipates discussion of products acquired through recent transactions, including Ohtuvayre from Verona, MK-1406 from Cidara, and TERN-701 from Terns.
The firm noted these acquired products, combined with Merck’s internally developed assets and potential future business development, are expected to help the company address Keytruda’s anticipated revenue decline. An InvestingPro tip highlights that Merck has raised its dividend for 15 consecutive years, demonstrating financial resilience even as it navigates patent challenges.
In other recent news, Merck has announced the start of a pivotal Phase 2b/3 trial for MK-8748, an investigational treatment for neovascular age-related macular degeneration. This development follows encouraging results from earlier trials and marks a significant step in the drug’s late-phase development program. Meanwhile, Jefferies has raised its price target for Merck to $138, up from $132, while maintaining a Buy rating, following positive data from the Phase 2 CADENCE trial for Winrevair, presented at a major cardiology conference. Additionally, Merck reported that its investigational drug enlicitide showed superior cholesterol reduction in a Phase 3 trial compared to several existing treatments when added to statin therapy. On the analyst front, Cantor Fitzgerald has maintained a Neutral rating with a $120 price target on Merck, citing mixed results from the CADENCE study for the heart drug sotatercept. The results were described as less straightforward, with higher doses showing less favorable outcomes in certain metrics. These recent developments highlight Merck’s ongoing efforts in advancing its drug pipeline and the varied analyst perspectives on its stock.
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