Bank Of America Raises PT To $29 On MRK

Bank of America is raising its price target to $41 and is reiterating its Buy rating on Merck & Co. MRK, as investors begin to warm up to pharma stocks again. Says Bank of America, in the report, “With each of the 4 US Major Pharma stocks beating Q1 results and investors beginning to warm up to our "the world is not ending" valuation-based thesis, we are reiterating our bullish view on the sector and raising our price targets. Recall that when we launched on March 11th (“Reinstating with a Buy – Good value with pipeline optionality”), we did so with a Buy rating on MRK. We continue to like the risk/reward for MRK shares given a good mix of low valuation, track record of returning cash to shareholders (4.2% dividend yield), and pipeline optionality.” MRK closed at $37.08 on Friday.