MRK - Merck downgraded to hold at Argus Allogene upped at Truist and more in today's analyst action
Merck downgraded on Organon spinoff impactArgus has downgraded Merck (MRK) from buy to hold ahead of next month's spinoff of the Organon division and the implications it might have on the bottom line.Analyst David Toung writes that the spinoff will at least initially lower Merck's operating margin following the loss of high-margin Organon products.As a result, Keytruda will account for a larger percentage of revenue as sales growth is slowing and competition is increasing.On the positive side, Toung notes that the spinoff will allow the company to focus capital on developing new drugs, vaccines, and specialty products.Allogene lymphoma data at ASCO encouragingYesterday's release of phase 1 data on two non-Hodgkin lymphoma candidates provides a bullish case for Allogene Therapeutics (ALLO), leading Truist to upgrade shares to buy.Analyst Asthika Goonewardene has a $41 price target on shares (44% upside)."We think they are starting to a hold a candle to their autologous cousins," writes
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Merck downgraded to hold at Argus, Allogene upped at Truist, and more in today's analyst action