S&P Capital IQ Reiterates its BUY Rating on Merck

October 29 00:00 2011

New York, October 29 (RainbowNewsLine.com) – Analyst Herman Saftlas of S&P Capital IQ reiterates his BUY rating on the shares of Merck (NYSE: MRK). The 12-month target price is set to $42.

Analyst Herman Saftlas, in a research note published yesterday mentions that the company has reported its Q3 EPS in line with the estimates. Merck posted a sales growth of 8% (5% from Forex), in which Januvia/Janumet diabetes drugs (sales up 41%) and Gardasil HPV vaccine (sales up 41%) are noticeable performers, the analyst says. Despite the sales of recently launched Victrelis hepatitis C drug being only $31 million, the analyst expects solid growth from new VA contract and expansion of Merck overseas. Gardasil will also be benefitting from the entry in male market, the analyst says. The Research and Development pipeline is very promising which the company is planning to present on November 10, according to the analyst.