Merck price target raised to $127 from $116 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Merck to $127 from $116 and keeps an Equal Weight rating on the shares. The company’s Keytruda will be one of the largest drugs in the history of the biopharma industry as the drug has revolutionized the treatment of many cancers by prolonging survival, but with loss of exclusivity in 2028 approaching, investors are increasingly focused on Merck’s diversification/revenue replacement strategy, the analyst tells investors in a research note. Morgan Stanley adds that it is encouraged by the progress that Merck has made on the revenue replacement front, specifically in advancing the company’s internal pipeline – including V116, Vibo/TIGIT and oral PCSK9 – as well as acquiring assets via M&A and business development.