[Some of my longest-term readers may recall that Barclays acquired this analyst group from the implosion of Lehman Bros. (itself the successor to Shearson Lehman), in what became the financial crisis of 2008. In that meltdown, the doors of Lehman were sealed shut -- due to a liquidity crisis at the firm -- and Barclays swooped right in. But that is all just a historical footnote, now.]
Today's news is much sunnier -- as the group sees these older name big pharma players as not fully valued on the NYSE at present. So the targets have been upped, and the "Equal Weights" moved to "Overweights". Sweet -- from TheStreet morning's reporting, then:
. . . .[Merck shares are rising] Tuesday after Barclays upgraded the pharmaceutical company to "overweight" from "equal weight" and hiked its price target to $66 from $64.
Merck's oncology assets like IDO can "step up the pace of pipeline deals," analysts said.
Even though the company's arthritis medicine Remicade is seeing some risks, analysts do not expect Januvia, a diabetes drug, to collapse overnight, according to the firm's note. . . .
Overall, analysts are deciding to stay optimistic, adding that Merck's pipeline is "free, at current levels. . . ."
I must say that I don't really see Merck's pipeline as "free", in the NYSE valuation, at present -- I think it has just been appropriately discounted, given BMS's continuing and widening lead in immuno-oncology. I think that is what Barclays refers to as "IDO". Now you know.
O/T: To be sure, we applaud Mayor Emanuel's acceptance of Supt. McCarthy's resignation -- but there is much more yet to do, to restore trust here in the city of Big Shoulders. . . onward -- solemnly, onward. . . .
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