"Merck tells an interesting story, yet the five-year revenue and earnings growth guidance seems far-fetched," Prudential analyst Tim Anderson wrote in a recent investor report.
The analyst believes Merck's long-term guidance was "questionable" as the company's growth targets include compound annualized revenue growth of 4% to 6% through 2010 and double-digit compound earnings-per-share growth over the next three to five years.
"Built into current share price is probably this sense of disbelief already," Anderson said, "and at least throughout the current year there may not be much to judge whether those targets are realistic and achievable."
Call it like you see it Tim.
Forbes
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