RBC Capital lowered Merck & Co.'s 2027 earnings outlook and changed its price target from $150 to $145. The outlook for the third quarter of 2026 and the growth outlook for 2027 were also provided.
RBC Capital changed Merck & Co.'s price target from $150 to $145. The Sector Perform rating was maintained. The article focuses on an updated valuation following the changes to the company's outlook.
RBC's forecast for the third quarter of 2026 is revenue of $17.3 billion and EPS of $2.12, broadly in line with consensus. The company's guidance is positioned near the upper end of the range. It was also reported that growth in 2027 is expected to be moderate against a backdrop of higher investment levels.
2027 revenue growth is estimated at 2.4% and EPS at $8.83, below the market consensus of 5% growth and EPS of $9.37. According to InvestingPro, 8 analysts have recently revised their forecasts downward.