Merck downgraded to Hold from Buy at Truist

Truist downgraded Merck (MRK) to Hold from Buy with a price target of $110, down from $130, as part of a broader research note previewing FY25 for large-cap biopharma. The sector has underperformed the SP500, and with uncertainty around macro environment, investors have remained cautious, the analyst tells investors in a research note. Truist adds however that tailwinds for the sector could emerge from continued execution on launches, mid-stage growth, key catalysts, and an incoming administration potentially being more pro-pharma than expected. For Merck however, Truist warns that a major upcoming loss of exclusivity and Gardasil headwinds are seen carrying over from 2024, and while the company should navigate through the environment, it will take time to reflect in growth.