Truist Securities has reiterated a Buy rating and left its price target for Revolution (NASDAQ: RVMD) unchanged at $99.00, underlining the firm's continued constructive view of the biopharmaceutical company.
The decision to reaffirm coverage came after a Wall Street Journal report that Revolution and Merck were unable to reach agreement on price in potential acquisition discussions. Truist interprets the episode as a marker of Revolution's standing in the market rather than a sign of weakness.
In its note, Truist highlighted what it described as Revolution's resilience and said management appears confident in the company's clinical pipeline. The research firm pointed to the reported $30 billion transaction value cited in coverage of the talks as a validation of Revolution's worth.
Truist suggested that the $30 billion figure could act as a benchmark for other potential suitors evaluating the company. At the same time the firm emphasized that Revolution is well-funded and "doesn’t need to do a deal," implying strategic optionality for management.
The brokerage also flagged a path by which Revolution might reach comparable enterprise value on its own timeline. Truist noted that, depending on clinical updates from Revolution and its competitors, the company could potentially achieve that enterprise valuation within 12-24 months.
Alongside commentary on Revolution, the note summarized recent activity and viewpoints around Merck. Bank of America added Merck & Co. Inc to its US 1 List, identifying the company as one of the firm's leading investment ideas. Separately, TD Cowen increased its price target on Merck to $120 while retaining a Hold rating, citing concerns about the broader growth outlook. Leerink Partners raised its target to $124 and maintained an Outperform rating, calling Merck a top pick for 2026 on the strength of material clinical developments. Bernstein reiterated a Market Perform rating with a $95 target and expressed skepticism about Merck's growth prospects beyond its Keytruda franchise.
On the clinical front, Merck and Moderna reported results from a Phase 2b study of an investigational mRNA-based cancer therapy. The combination regimen showed a 49% reduction in recurrence risk for high-risk melanoma patients over a five-year follow-up period. Truist and other analysts are considering how these clinical developments fit into Merck's strategic positioning within the pharmaceutical sector.
Truist's reaffirmation of Revolution's Buy rating reflects its view that management confidence, available capital, and a strong clinical program support the company's valuation prospects, whether via a deal or through organic value creation tied to clinical progress.