Merck (MRK) remains on track to repurchase $3 billion in shares this year, Morgan Stanley said in a note Tuesday.
In its Q2 earnings call, the company reiterated its confidence in the more than $70 billion commercial opportunity from over 20 new pipeline products first laid out earlier this year, the investment firm said.
Morgan Stanley said Merck expressed a bullish view on its pipeline, and characterized the company as more diversified and better positioned for sustainable growth.
Outlook for the stock depends on Keytruda life cycle management, pipeline progress outside of cancer, and M&A capital deployment, according to the note.
Morgan Stanley retained an equal-weight rating on the stock, but increased its price target to $116 from $113.
Shares of Merck were up 1.7% in Wednesday trading.
Price: $130.13, Change: $+2.13, Percent Change: +1.66%