Analyst: Merck Stock Could Jump 25%

Options traders are unusually pessimistic

Deputy Editor
Oct 27, 2023 at 10:15 AM
facebook X logo linkedin


BMO Capital upgraded shares of pharmaceutical company Merck & Co., Inc. (NYSE:MRK) to "outperform" from "market perform" and hiked its price target to $132.

Some patents on Merck's cancer immunotherapy Keytruda, its top-selling cancer drug, begin to expire at the end of the decade. However, the Wall Street brokerage noted the likely offset of Keytruda loss of exclusivity with buyout deals -- like its recent $5.5 billion deal with Japan-based Daiichi Sankyo -- and pipeline execution. The blue-chip pharma stock's new price target is also a 25% premium to last night's close.

The brokerage bunch is overwhelmingly optimistic on MRK, with 14 recommending a "strong buy." On the other hand, three still rate Merck stock a tepid "hold," leaving a little room for pessimism to unwind.

A shift in sentiment in the options pits could inject even more tailwinds. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio stands higher than 88% of readings from the past 12 months.

Despite the bull note, Merck stock sports a was last seen 0.7% lower at $104.77. On the charts, MRK's 80-day moving average that moved in as pressure in mid-August still stands firmly as resistance. Still, year on year, the stock is up nearly 7.3%.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI