Merck: Morgan Stanley downgrades stock

(CercleFinance.com) - On Tuesday Morgan Stanley downgraded Merck shares from "overweight" to "equal weight", reducing its target price for them from 90 dollars to 85 dollars.


While analysts still believe in the potential offered by the Keytruda immunotherapy, the broker also said that it is concerned about the US biopharmaceutical group's lack of diversification.

"Investors are not convinced that the current pipeline assets, including HIV drug islatravir and early oncology assets, are enough to offset the Keytruda cliff at the end of the decade," they say.

"Stock could potentially be boosted on the heels of positive COVID oral antiviral molnupiravir Phase 3readout and EUA approval, but we do not see significant upside without meaningful strategic action," the broker concludes.



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