Deutsche Bank Upgrades Merck to Buy with $150 Target
- Rating Upgrade: Deutsche Bank analyst James Shin upgraded Merck from Hold to Buy, raising the price target from $115 to $150, indicating a potential 26% upside from Thursday's closing price of $119.24, reflecting the market's undervaluation of the company.
- Patent Cliff Concerns: The analyst noted that market fears regarding Keytruda's impending patent expiration have led to Merck's undervaluation, but he believes the company has a clear path to navigate this transition effectively, similar to AbbVie's successful management of Humira's patent cliff.
- Optimistic Earnings Outlook: Shin projects Merck's trough earnings at approximately $11 per share, exceeding the Street's consensus of around $10, with historical data showing that investing at points of trough clarity often presents significant opportunities, as evidenced by AbbVie's valuation multiple expansion from 11x to 15x.
- Pipeline Potential: Deutsche Bank's assessment suggests that Merck may already have visibility to low-single-digit terminal revenue growth excluding Keytruda, with its pipeline strengthened by acquisitions like Winrevair, Ohtuvayre, and CDTX, potentially providing over $35 billion in risk-adjusted revenue by 2035, easing the transition beyond Keytruda.
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Mubadala Investment Co PJSC Reduces ARM Holdings PLC Share Stake by 8.3% to 1.4 Million Sponsored ADS, According to SEC Filing
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- Sponsored Ads Impact: The reduction in stake is highlighted in a recent SEC filing, indicating potential implications for sponsored ads and investment strategies.
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- Investment Stake: Mubadala has cut its share stake in Adobe by 49.0%, reducing its holdings to 11,570 shares.
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Investment Increase: Mubadala Investment Company has raised its stake in CVS Health Corporation by 17.3%.
Share Count: The new total of shares held by Mubadala in CVS Health is now 149,769 shares.
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Investment Increase: Mubadala Investment Company has raised its share stake in ILEAD Sciences by 30.4%.
New Share Count: Following the investment, Mubadala now holds a total of 100,178 shares in ILEAD Sciences.
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Investment Increase: Mubadala Investment Company has raised its share stake in Bristol-Myers Squibb by 41.3%.
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