NRIX - Merck spinoff closes higher despite neutral views; Mirati gains on Citi upgrade; more in today's analyst action
Organon attracts neutral views on the first day of tradingMerck (MRK) spinoff focused on women’s health and biosimilars, Organon (OGN), staged a late-afternoon rally to end ~8.4% higher yesterday on its first day of trading as a separate entity.In contrast to two buy ratings it previously earned, the new member of the S&P 500 received two neutral ratings and a sell from the Wall Street analysts yesterday.Cowen analyst Steve Scala with a market perform rating calls Organon “a wait-and-see” stock while Goldman Sachs analyst Terence Flynn has a neutral rating to predict a relatively stable top-line for the company until 2021 with low- to middle-single digit revenue growth for 2021-25.Their price targets of $40.00 and $35.00 per share imply ~8.1% upside and ~5.4% downside, respectively. During an investor presentation early this month, Organon CFO Matt Walsh forecast $6.1B - $6.4B in Pro-forma revenue for the company in 2021 down from $6.6B in
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Merck spinoff closes higher despite neutral views; Mirati gains on Citi upgrade; more in today’s analyst action