Wedbush lifts Revolution Medicines PT as Merck takeover talks heat up

Wedbush raises PT on cancer drug developer Revolution Medicines RVMD.O to $147 from $80

Merck MRK.N is in talks to buy Revolution in a deal worth up to $32 billion, FT reported on Thursday

Brokerage says "given the evolving news cycle, we are assuming the FT report is likely accurate"

RVMD shares were up 12.9% to $121.21 premarket

The Wall Street Journal reported on Wednesday that AbbVie ABBV.N was in advanced talks to buy Revolution, a claim the drugmaker later denied

Adds "we believe $28 billion represents an attractive but not unreasonable price for shareholders – our sum of parts 2031 unadjusted revenue model estimate is ~$7 billion across RVMD’s pipeline"

The new PT represents a 36.9% upside to the stock's last close

Wedbush maintains "outperform" rating on the stock

All the brokerages rate the stock "buy" or higher; their median PT is $80 - LSEG data

As of last close, stock has more than doubled in past 12 months