Merck: Buy Opportunity Backed By Growth

Summary:

  • Merck’s strong financial performance in oncology and vaccines drove a 9% sales increase earlier in Q1 of 2024, despite challenges with other products.
  • Promising future developments include successful Phase 3 trials for ovarian cancer and positive CHMP opinion for Welireg, enhancing MRK’s oncology and rare disease portfolio.
  • MRK’s drug pipeline is robust, with 60% in Phase 2, indicating medium-term revenue potential, and its EV/EBITDA ratio aligns with sector averages.
  • Technical analysis shows MRK at a strong support level around $99, presenting a good buying opportunity, with target prices of $119 first and $133 after the level is breached.

Merck & Co. headquarters in Silicon Valley

Sundry Photography

Merck & Co. (NYSE:MRK) has seen significant changes in its financial performance and market position through 2024. In this article, I attempt to provide investors with a comprehensive analysis of MRK’s past business performance, future growth prospects, and its competitive


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MRK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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