UBS Bullish on Merck (MRK) Following Verona Pharma Purchase

Merck & Co., Inc. (NYSE:MRK) ranks among the best magic formula stocks to invest in. On July 10, UBS reiterated its Buy rating and $105 price target for Merck & Co., Inc. (NYSE:MRK). Analyst Trung Huynh remained optimistic about the pharmaceutical giant after Merck confirmed that it would acquire London-based Verona Pharma for $10 billion.

According to consensus estimates of $3.7 billion, the acquisition represents about 2.7 times peak sales, which is consistent with industry norms, according to UBS. The firm believes that Ohtuvayre’s launch should benefit from Merck’s size and business acumen, much like recent deals like Acceleron.

In a call, Merck & Co., Inc. (NYSE:MRK) stated it remains open to $1 billion to $15 billion in additional acquisitions, which UBS believes will be needed to counteract the 2028 Keytruda patent cliff.

Merck & Co., Inc. (NYSE:MRK) is a well-known American multinational pharmaceutical firm. Internationally recognized as Merck Sharp & Dohme (MSD), the company is a global provider of prescription medications, vaccines, biologic therapies, and animal health products.

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Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

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