Merck price target lowered to $120 from $140 at BofA

BofA analyst Charlie Yang lowered the firm’s price target on Merck (MRK) to $120 from $140 and keeps a Buy rating on the shares. Q3 results modestly beat on the top and bottom line, but shares were under slight pressure as the company narrowed its revenue guidance and lowered EPS guidance to $7.72-$7.77 from $7.94-$8.04, mostly due to inclusion of a charge related to prior M&A, the analyst recaps. The firm updated 2024 forecasts, with revenues nearly unchanged and EPS rising slightly to $7.77 from $7.72 given updated guidance, but for 2025 the firm lowered its estimates to reflect declining Gardasil sales and increased OpEx spending.