Merck (MRK) PT Raised to $100 at Bernstein SocGen Group

Bernstein SocGen Group analyst Courtney Breen raised the price target on Merck (NYSE: MRK) to $100.00 (from $95.00) while maintaining a Market Perform rating.

The analyst commented: 'The stock worked despite the soft-guide - investors optimistic on pipeline & new launch prospects; Our take: A decent performance this quarter, good signals for newer launch products (except Enflonsia), but we still need to see more; in particular that softness (e.g. Gardasil, and others) won’t continue to drag the business beyond ‘26. We will continue to do more work on the pipeline potential (we can’t yet justify MRK’s $50 or more recent $70B non-risk adj. internal expectations). More sizeable M&A (with revenue impact in ‘28-32) and continued positive data cards are what is required to make us more positive on the name. We update our price target to $100 (prev. $95), applying a blend of mulitple valuation (10x PE multiple on FY27E EPS, was 9.1x 26E) and DCF ($112; WACC 8%, TGR 1%, was 7%/1%) - reflecting that since acquisitions and Q4 performance we think trading at the upper-end of a 8-10x band is now appropriate."

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