UPDATE: Morgan Stanley Raises PT to $37 on Merck

Morgan Stanley reiterates its Equal-weight rating on Merck MRK and raises its price target to $37 (previously $34) as it extends model through 2020. Morgan Stanley says, "We raise our PT on MRK from $34 to $37, based on extending our model through 2020 and pushing IMPROVE-IT-driven Vytorin cliff from 2013 to 2014. We maintain 60% odds that IMPROVE-IT fails to show Vytorin is better than Zocor." MRK closed at $37.91 a share on Friday.