Molnupiravir, co-developed COVID-19 oral treatment by Merck & co. and Ridgeback Biotherapeutics reduces hospitalization risk by 50%. As a result, it caused a steep sell-off in COVID-19 stocks all across the board chart. Is Merck a stock to buy now?
Geoff Meacham, a Bofa Securities analyst has increased Merck stock price target from $80 to $85. “Merck’s molnupiravir could be a game-changing therapy for COVID-19 while new cases continue to decline week-over-week” Meacham said.
Geoff Meacham added that molnupiravir and neutralizing antibodies are effective drugs in speeding up recovery so patients heal faster.
Due later this year, reports for more oral treatments from other competitors like Pfizer (NYSE:PFE) and Roche Holding AG (OTC:RHHBY), he said.
This development regarding Merck’s finding, changes the whole narrative for COVID-19 vaccines. consequently It may pressure other vaccine manufacturers like Moderna inc. (NASDAQ:MRNA), Pfizer (NYSE:PFE) and Johnson & Johnson (NYSE:JNJ), he said.
A significant value yet to booster post-2025. Around $5 billion for Moderna and $3 billion for Pfizer each year, he said. In short, it may sound like stocks to buy.
“In our view, the availability of orals to treat breakthrough infections will likely call into question the need for annual boosters for broad populations.” He later added.
Moreover, Bofa has made an estimation of $915 million in 2021. $1.5 billion in 2022, and $1 billion in 2023 for Molnupiravir worldwide sales.
Since Molnupiravir news breakout, Johnson & Johnson shares fell down by 0.86% at $158.18.
Pfizer shares lost 1.22% to $41.80. Pfizer’s german partner BionTech SE (NASDAQ:BNTX) went down by 3.23% at $242.05.
Meanwhile, Merck’s shares were down by 1.46% at $80.41.
Price Target for MRK:
StockandMore.Com Price Target for MRK: $104.10 per share.
How to Buy Merck Stock:
If you’re interested in buying Merck & CO. It’s better to wait for pullback. Use Buy Limit at Weekly Anchored VWAP from low of 23 March 2020.
Entry point: 75.61
Price Target: 104.10
Stop Loss: 70.39 *
*For someone who is a long-term investor with a good risk-management, it is possible not to apply S/L.
Merck & Co., Inc. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany during 1668.
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