Above Average EPS Growth Projected For MRK

Analysts at Cowen & Co maintain their "outperform" rating on Merck & Co Inc (NYSE: MRK), while raising their estimates for the company.

According to Cowen & Co, the upward revision in the estimates is to reflect Merck’s SGP merger and the associated cost savings. The analysts expect MRK’s EPS growth to be above average through 2015, although the sales growth would be moderate.

Cowen & Co believes that Merck’s sales growth would recover after 2012. The analysts also say that MRK’s SG&A expenses would decline by 5% during 2008-15. The analysts expect the company’s Q4 EPS to be $0.76. Cowen & Co has raised its EPS estimate for 2010 from $3.25 to $3.50.