Key insights
- UBS reiterates a Buy rating on Merck (MRK) citing a strong drug pipeline and potential for growth beyond 2029. SacTMT is highlighted as a potential $5 billion peak sales drug. FDA priority review for KEYTRUDA in bladder cancer and a Phase 2b/3 trial for macular degeneration treatment are also noted. Guggenheim also reiterated a Buy rating. These positive analyst opinions and pipeline developments suggest a moderately bullish outlook for MRK.
Investing.com - UBS reiterated a Buy rating and $145.00 price target on Merck (NYSE:MRK) stock, which currently trades at $118.44. The stock has delivered a remarkable 58% return over the past year and is trading near its 52-week high of $125.14.
The firm highlighted Merck’s pipeline of six major drugs expected over the coming years and ongoing deal activity aimed at portfolio growth beyond the 2029 loss of exclusivity. The company filed a B7H3 ADC with Daiichi in small cell lung cancer last week.
UBS views SacTMT as a potential $5 billion peak sales drug across multiple tumor types, with 17 Phase III studies currently underway. The firm considers SacTMT a key growth driver for the company. According to InvestingPro analysis, Merck appears undervalued at current levels, with the platform’s Fair Value assessment suggesting additional upside potential beyond UBS’s target.
Data expected at ASCO represents a modest catalyst and should support use in non-small cell lung cancer subgroups, according to the firm. Merck has already initiated a global Phase III trial for first-line NSCLC PD1 >50% called TroFuse07.
UBS predicts the TroFuse07 trial will read out in early 2027 and expects a subsequent FDA filing.
In other recent news, Merck has received FDA priority review for two supplemental Biologics License Applications for KEYTRUDA and KEYTRUDA QLEX, in combination with Padcev, aimed at treating muscle-invasive bladder cancer. The FDA has set a target action date for these applications in mid-August. Additionally, Merck has initiated a pivotal Phase 2b/3 trial for MK-8748, a treatment for neovascular age-related macular degeneration, marking a significant step in its late-phase development program. In financial updates, Guggenheim has reiterated a Buy rating on Merck shares, with a price target of $140, adjusting its sales and earnings per share estimates for the upcoming first-quarter 2026 earnings release. Cantor Fitzgerald has maintained a Neutral rating with a $120 price target, noting minimal adjustments to its financial model following Merck’s recent quarterly results. Furthermore, Jefferies has raised its price target for Merck to $138, maintaining a Buy rating, after the presentation of Phase 2 CADENCE trial results for Winrevair at a major cardiology conference. These developments highlight Merck’s ongoing efforts in advancing its pharmaceutical pipeline and financial projections.
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