BMO upgrades Merck to 'outperform' on multiple upcoming catalysts

Brokerage BMO Capital Markets upgrades U.S. pharma major Merck MRK.N to "outperform" from "market perform", hikes PT to $130 from $82

New PT represents a 32.2% upside to stock's last close of $98.33

Brokerage says Merck is clearly and confidently assembling a portfolio of new clinical assets to grow through the upcoming loss of exclusivity for its cancer drug Keytruda in 2028

With completed external deals and promising internal R&D assets, BMO expects new products to nearly offset Keytruda’s eventual revenue loss

Says investors have also moved past concerns over MRK's HPV vaccine Gardasil in China and are now focusing on multiple upcoming catalysts

Forecasts commercial outperformance from assets such as Enflonsia, Reblozyl and Welireg in the nearer term

"The Keytruda story is not finished, but we are now confident that 90% of peak sales can be replaced by the mid-2030s" - BMO

As of last close, MRK stock down 0.3% YTD