Merck's (MRK) recent commentary suggests "'modest" 2027 growth in the backdrop of elevated investments, including higher operating expenditures, RBC Capital Markets analysts said in a Monday note.
The company is scheduled to report Q3 financial results on Oct. 29.
For Q3, RBC projects Merck adjusted earnings per share of $2.12, compared with a FactSet consensus estimate of $2.11.
Analysts said that Keytruda US growth in Q3 continued at a more moderate pace as it neared peak penetration in core tumor types.
RBC said that Gardasil should benefit from typical back-to-school seasonal demand in Q3.
Analysts said the European Society for Medical Oncology event will be a key catalyst for Merck stock, as the company is set to report data from its melanoma study.
RBC retained a sector perform rating but lowered its price target to $145 per share from $150.
Price: 145.00, Change: -0.60, Percent Change: -0.42
