J.P. Morgan Maintains Overweight Rating On Merck & Co

According to J.P. Morgan, Merck & Co MRK reported inline 2Q EPS, the company announced an expanded restructuring program that represents a key positive. J.P. Morgan said that the initiative is expected to drive annual cost savings of $4.0-$4.6 bn by 2015 (vs. prior $3.5bn by 2012) and while some of this savings will be reinvested, it is increasing the 2014+ EPS estimates. “While Merck has gone through a period of limited pipeline catalysts, we view the company's execution on its 2011 guidance targets and approaching pipeline updates/analyst day as potential catalysts for the stock and are maintaining our OW rating.” Merck & Co closed on Friday at $34.13.