Merck (MRK) shares climbed more than 2% on Friday, extending the positive reaction to its third-quarter results posted Thursday, while the S&P 500 fell a relatively steep 1.8%. Sales rose 5% to over $18 billion, driven by Keytruda, and non-GAAP net income fell 4% to nearly $6.2 billion, with both figures and its full-year 2026 guidance beating average analyst estimates. Two of the four big banks raised their price targets: Bank of America Securities to $165 from $163 and J.P. Morgan to $175 from $165, and both maintained their buy ratings. The author notes that Keytruda is approaching its patent cliff, but the pipeline offers room for another blockbuster, and the stock currently yields 2.3%.
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