Merck & Co Inc
MRK: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$888.00 | Rnqf | Krqvvtvr |
Merck Earnings: Steady Results as Robust Keytruda Gains Help Mitigate Gardasil Pressure
We are holding steady to our $120 fair value estimate for Merck following slightly-better-than-expected second-quarter results. However, the slowing growth from human papillomavirus vaccine Gardasil (up 4%) is likely weighing on the stock. We still see growth for the vaccine, but likely at a decelerating pace from the past few years as the market saturates in the previously fast-growing market of China. Overall, with the stock trading close to our fair value estimate, we believe the market is holding a reasonable outlook for the firm.