Wall Street analysts’ estimates
Wall Street analysts expect Merck & Co.’s (MRK) top line to increase 7.1% to $10.1 billion for 1Q18, compared to revenues of $9.4 billion for 1Q17.
The above chart shows analysts’ recommendations over the last 12 months. The revenues for Merck are expected to be driven by strong sales of Keytruda and other products, partially offset by lower sales of Remicade, Zetia, Vytorin.
Merck & Co.’s stock price has decreased nearly 4.9% over the last 12 months, but it increased ~5.7% in 2018 year-to-date. Analysts’ estimates show that the stock has a potential to return ~15.6% over the next 12 months. Wall Street analysts’ recommendations show a 12-month target price of $68.75 per share, compared to the last price of $59.47 per share as of April 29.
Twenty-one analysts are tracking Merck & Co. Of these 21 analysts, six recommend a “strong buy,” ten recommend a “buy,” and five recommend a “hold” while none of the analysts recommend a “sell.”
The consensus rating for Merck & Co. stands at 1.95, which represents a “buy” for both long-term growth investors and value investors.
Merck & Co. is trading at a forward PE multiple of 13.8x, which is higher than the industry average of ~12.4x. Also, Merck & Co. is trading at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of ~11.3x, which is lower than the industry average of ~11.8x.
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