Merck & Company: Strong Buy Rating Driven by Keytruda Success and Promising Pipeline Developments

Analyst Nico Chen of DBS maintained a Buy rating on Merck & Company (MRK – Research Report), with a price target of $100.00.

Nico Chen has given his Buy rating due to a combination of factors that highlight Merck & Company’s strong growth potential and market position. A significant contributor to this positive outlook is Keytruda, Merck’s blockbuster cancer drug, which has been a major success for the company. Keytruda has not only established Merck as a leader in oncology but has also shown substantial revenue growth, expanding its presence in global markets.
Another factor influencing the Buy rating is the promising development of sac-TMT, an antibody-drug conjugate for non-small cell lung cancer. With the US FDA granting it Breakthrough Therapy Designation, sac-TMT is poised to accelerate through clinical trials, potentially boosting Merck’s share price. Additionally, Merck’s financial outlook is robust, with an expected increase in net income growth and a low risk of patent expirations compared to industry peers. These elements collectively support the Buy recommendation, with a target price set at USD 100.

In another report released on May 20, Berenberg Bank also maintained a Buy rating on the stock with a $100.00 price target.