gs: Merck & Co., Inc. EPS (FY Dec) 2006E $2.57, 2007E $2.39 Sell/Neutral
(MRK) $45.64
Whats changed
After 3Q2006 earnings, we are raising our view on 2006-2010 EPS, but our EPS
trajectory retains its decline through 2008 and then recovers (guidance calls for
growth for 2007 and 2008 and double digit growth over five years). Our new
estimates are $2.57, $2.39, $2.17, $2.57, and $2.91 from $2.50, $2.08, $1.82, $2.27,
and $2.59. Our five-year growth forecast is 3% (from 0%). We expect strong
earnings through year-end but difficulty through 2008. We are maintaining our Sell
rating at this time, but do note that the shares could continue to have near-term
strength on the Januvia rollout underway. |
