MRK - Organon wins Buy rating at Goldman Sachs on undervalued Women's Health unit

Goldman Sachs has launched its coverage on Organon (NYSE:OGN), arguing, among other things, that the market hasn’t adequately appreciated the Women's Health (WH) business of the Merck (MRK) spinoff. The price target set to $40 per share implies a premium of ~26% to the last close. The firm notes that the value the investors have attributed to the WH unit indicates an under-appreciation of the company’s ability to grow its assets, such as Nexplanon and the Fertility products portfolio, above the historical levels and the consensus. Goldman also cites uncertainty regarding the management’s ability to halt declining revenue growth in the Established Brands (EB) portfolio. Citing its higher valuation estimated for WH business, Goldman argues that “the implied valuation for EB gives the company a fairly wide margin for error in terms of delivery over the near-term.” In 2021, Organon (OGN) reported $6.3B in revenue with ~3% YoY decline as

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Organon wins Buy rating at Goldman Sachs on undervalued Women's Health unit