Merck Downgraded to “Hold” at Citigroup on Failed Blood Clot Drug (MRK)

By
A A A
Share |

Pharmaceuticals giant Merck & Co., Inc. ( MRK ) on Friday caught a downgrade from analysts at Citigroup, following the company's Thursday announcement of the failure of its blood clot drug Vorapaxar.

Vorapaxar has been deemed inappropriate for patients who have suffered a stroke, thus halting the drug's development and eliminating a key potential earnings pipeline for the drugmaker. That announcement on Thursday sent Merck's shares reeling nearly 7%.

On Friday, Citigroup said it downgraded MRK from "Buy" to "Hold" on the news with a $39 price target. That target implies a 12% upside to the stock's Thursday closing price of $34.69. Citigroup noted that Vorapaxar was the company's best near-term drug prospect.

Merck shares were mostly flat in premarket trading Friday.

The Bottom Line
Shares of Merck ( MRK ) have a 4.38% dividend yield, based on last night's closing stock price of $34.69. The stock has technical support in the $32 price area. If the shares can firm up, we see overhead resistance around the $38 price level.

Merck & Co., Inc. ( MRK ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: MRK

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Pop Quiz: Insurance
Pop Quiz: Insurance                 

Stocks

Referenced

100%

Most Active by Volume

37,694,512
  • $102.65 ▲ 0.51%
35,941,285
  • $16.08 ▼ 0.74%
25,476,508
  • $12.985 ▼ 5.08%
22,490,934
  • $49.54 ▲ 3.08%
20,301,796
  • $3.615 ▲ 0.70%
14,210,037
  • $18.98 ▼ 1.20%
12,485,558
  • $74.089 ▼ 0.72%
12,346,853
  • $10.93 ▼ 2.41%
As of 8/28/2014, 12:20 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com