Investor sentiment on Merck shares remains positive but relative valuation and Keytruda concentration remains the primary pushback on the thesis, JPMorgan analyst Chris Schott tells investors in a research note. However, the analyst's sum-of-the-parts valuation analysis indicates a "highly inexpensive valuation" when incorporating a premium for the company's Animal health and Vaccines franchises. Further, while Keytruda represents a sizable portion of Merck's earnings and growth, the company has a full decade to further develop its pipeline and next-generation product offerings before the product faces biosimilar competition, Schott contends. As such, he continues to see Merck as one of the best positioned names in his coverage group. The analyst keeps an Overweight rating on the shares with a $96 price target.