UBS Affirms Merck & Co’s (MRK) ‘Buy’ Rating on HPV Vaccine Prospects

Merck & Co., Inc. (NYSE:MRK) is one of the 10 best defensive stocks to buy in a volatile market. On July 2, UBS reiterated a ‘Buy’ rating on the stock and a $105 price target. According to analyst Trung Huynh, the company’s human papillomavirus (HPV) vaccine, Gardasil, is a key driver of growth.

UBS Affirms Merck & Co’s (MRK) ‘Buy’ Rating on HPV Vaccine Prospects

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Huynh insists investors have only shown limited near-term interest in the stock ahead of key inflection points. For starters, the return of Gardasil shipments to China is expected to bolster the company’s revenue base. According to the investment firm Gardasil, inventory levels in China remain elevated owing to expanded promotional efforts spanning five regions.

Following $200 million in shipments into China, UBS does not expect additional shipments. However, it expects Merck to generate up to $5.8 billion in Gardasil sales. Additionally, Huynh is optimistic about the full Phase 3 oral PCSK9 CORALreef Lipids readout in hypercholesterolemia.

Merck & Co., Inc. (NYSE:MRK) develops and provides solutions in areas like biopharmaceutical therapies, scientific research tools, and materials for electronics, including smartphones and televisions.

While we acknowledge the potential of MRK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRK and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.