BMO Has Become Too Pessimistic About Merck. Will Miss 2025 Upside.

About a year ago, we reported that the firm made Merck an "outperform", with a target of $130. Most savvy Wall Streeters still agree with that assessment.

But about a week ago, BMO dropped Merck to "market perform", and reset the stock price target, at $103. It cited pessimism about Keytruda, and the cost of some recent acquisitions.

My view is that Rahway's acquisition savvy -- buying in at lower prices, and getting game changing therapies, in the process -- is one of Merck's core strengths.

Still, most of Wall & Broad disagrees with BMO: Merck is once again (as in the 1980s and '90s) the most reliable pharma to bet on. $130 is a sensible one year target. I will post my year end predictions… a day or two after we bring in the new year… so, stay tuned.

And as ever, be excellent to one another! [Dictated but not proofed.]

नमस्ते