Morgan Stanley raised to Peerperform, Merck a Buy at UBS: 4 big analyst picks
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed today: a Buy assumption at Merch, and upgrades at Morgan Stanley , Cognizant Technology Solutions, and Union Pacific.
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Wolfe Research upgraded Morgan Stanley (NYSE:MS) to Peerperform from Underperform.
The analysts previously had concerns about the stock's valuation, risks to net interest income estimates, Basel 3 Endgame impacts, and market/beta sensitivity. However, recent underperformance following Q3 earnings on Wednesday has led to a more balanced risk-reward profile, prompting the upgrade. The analysts now consider Morgan Stanley's shares to be fairly valued, with earnings risks better reflected in consensus estimates.
UBS assumed coverage on Merck (NYSE:MRK) with a Buy rating and a $122.00 price target, as reported in real-time on InvestingPro.
The bank anticipates consensus upgrades for Keytruda and Gardasil in 2024.
“We believe consensus continues to underestimate Keytruda revenues as it moves higher up the treatment algorithm, and Gardasil's growth in China,” commented the analysts.
The firm also highlighted underappreciated pipeline opportunities like PRA023 in UC and gefapixant in chronic cough. Additionally, they believe a potential readout in CADENCE in PH caused by heart failure is overlooked. Other catalysts include novel IO, other Keytruda subq/combos, and ADC data, contributing to a forecasted pipeline of $15.5 billion in 2030, compared to the consensus estimate of $12.7B.
The company is set to report its Q3/23 earnings on Oct 26.
Citi upgraded Cognizant Technology Solutions (NASDAQ:CTSH) to Buy from Neutral and raised its price
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