Merck (MRK)'s CEO Has a "Better Hand," Says Jim Cramer

We recently published 12 Stocks on Jim Cramer’s Radar.  Merck & Co., Inc. (NYSE:MRK) is one of the stocks on Jim Cramer's radar.

Merck & Co., Inc. (NYSE:MRK) is one of the largest pharmaceutical companies in the world. Its shares are flat year-to-date and would have been lower had it not been for a run that started on November 3rd. During this time period, Merck & Co., Inc. (NYSE:MRK) has benefited from several catalysts, which include optimistic data about its heart drug called Winrevair. On November 18th, the firm announced that phase two trials for the drug had been successful to allow it to proceed with a phase three study. Drugs such as Winrevair are important for Merck & Co., Inc. (NYSE:MRK) due to the success of its cancer drug Keytruda. With Keytruda’s patents set to expire soon, new drugs improve the firm’s chances of sustaining its revenue.

Positive news about the drug pipeline has also been accompanied by analyst optimism. For instance, Bank of America raised Merck & Co., Inc. (NYSE:MRK)’s share price target to $120 from $105 and kept a Buy rating on the stock on December 15th. The note outlined that the bank was basing its target on a new estimate of Merck & Co., Inc. (NYSE:MRK)’s FY27 EPS. Yet, while BofA has a Buy rating, Morgan Stanley reiterated its Equal Weight rating and raised the share price target to $102 from $100 on December 12th. Cramer discussed Merck & Co., Inc. (NYSE:MRK) after he discussed Pfizer’s latest guidance figures. Despite the recent strong performance, he believes the shares can go higher:

“I think Merck, on the other hand, Rob Davis, has a better hand. Stock’s going higher.”

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Disclosure: None. This article is originally published at Insider Monkey.