Merck (MRK) PT Raised to $132 at BofA Securities

BofA Securities analyst Tim Anderson raised the price target on Merck (NYSE: MRK) to $132.00 (from $124.00) while maintaining a Buy rating.

The analyst comments "Post 4Q, we reduce our MRK 2026 sales and EPS to reflect greater conservatism around some LOE products, US Gardasil (CDC update) and Lagevrio but we increase our outyear forecasts (+2-3%) as we now include MK-1406 (influenza) in our forecast. We increase our near-term spend to reflect costs associated with recent acquisitions, though we see a benefit to longer-term growth. Exiting the quarter, we remain bullish on MRK’s ability to re-rate driven by new product launches and pipeline catalysts. Based on our model updates, we raise our PO to $132 (from $124) based on a higher target P/E multiple of 13x (prior 11.5x) on underlying 2027E EPS; the higher multiple is in-line with industry multiples correlated to 5-yr sales CAGR (2032/2027)."

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