Merck & Co.'s Stock Receives Moderate Buy Rating Amid Strong Quarterly Growth
Merck & Co., Inc. (NYSE:MRK) has received a consensus recommendation of 'Moderate Buy' from twenty-two ratings firms, according to Marketbeat.com.
The company's stock has been upgraded by several analysts, with Daiwa Securities upgrading MRK from 'neutral' to 'outperform' and setting a price target of $143. Other analysts have raised fair-value estimates into the $140-$155 range, citing pipeline progress, business-development activity, and late-stage therapies.
The stock has performed well in recent quarters, with Keytruda demand, oncology products, new launches, and Animal Health contributing to quarterly revenue of $16.61 billion, above the consensus estimate of $16.37 billion. The company exceeded earnings expectations and reported 5.1% year-over-year revenue growth.
The firm's dividend payout ratio is high at 272%, but it has declared its regular $0.85 quarterly dividend, or $3.40 annualized. This represents a 2.5% dividend yield.