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UBS Maintains a “Buy” on Merck, Despite Potential Nasonex Generic Competition (MRK)
Drug maker Merck & Co., Inc. ( MRK ) on Monday received some continued bullish support from analysts at UBS.
The firm maintained its "Buy" rating and $42 price target on UBS, which suggests an 8% upside to the stock's Friday closing price of $38.94.
A UBS analyst noted he is not concerned right now about potential generic competition for the company's Nasonex drug. On Friday, a New Jersey judge ruled that generic competitor Apotex does not infringe on Merck's patent for mometasone furoate monohydrate.
Merck shares were mostly flat in late morning trading Monday.
The Bottom Line
Shares of Merck ( MRK ) have a 4.31% dividend yield, based on Friday's closing stock price of $38.94. The stock has technical support in the $36 price area. If the shares can firm up, we see overhead resistance around the $39-$40 price levels.
Merck & Co., Inc. ( MRK ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.