Analysts at Berenberg Bank provided their outlook on Merck & Co., Inc. (NYSE:MRK), increasing their price target on the company’s shares to $92 from $86, while maintaining their hold rating.

The price target change was due to a 4-10% increase in the brokerage’s EPS forecasts, which was based on (1) positive data for molnupiravir in COVID-19 treatment, (2) a reduction in Pneumovax/Vaxneuvance sales, more than offset by an increase in Gardasil sales, and (3) the Acceleron acquisition.

While the analysts said they are overall encouraged by the positive direction of travel, they believe more steps are needed to overcome the concentration risk of Keytruda (46% of NPV), with Keytruda adjuvant and/or combination studies’ risk of failure or competitors’ reaching of the market sooner.