Merck upgraded at Wells Fargo as analyst sees ‘a future beyond Keytruda’

Investing.com -- Merck shares received an upgrade at Wells Fargo, with analyst Mohit Bansa lifting the stock to Overweight and raising the price target to $125 per share in a note Monday, saying the firm “can see a future beyond Keytruda” as the company enters a catalyst-heavy stretch.

Wells Fargo’s call follows “recent BD, pipeline progress, and new launches,” which give the firm confidence that Merck can “fill the shortfall from Keytruda LOE and grow revenue in the early 2030s.”

The analyst added that Merck is heading into a “catalyst-rich period in the next 12-18 months with readouts across its pipeline.”

The upgrade hinges on one key change: Wells Fargo said it “no longer see[s] a major cliff in 2029-2031” and now expects the company to grow beyond 2031.

The firm’s sum-of-the-parts analysis suggests Merck’s pharma business is trading at roughly “8.7x 2026 multiple,” which it considers low given the “significant value in MRK’s pipeline.”

Wells Fargo estimates unadjusted peak pipeline sales at “$50B+ and at $23B on an adjusted basis.”

Bansal highlighted that Merck “may have added or derisked $20B+ of un-adjusted peak sales in the last 3–6 months,” citing a series of late-2025 developments.

Looking ahead, Wells Fargo said further de-risking in 2026-27 could add “$30/sh+ to DCF,” with upcoming readouts offering potential to “further de-risk the $50+ pipeline and expand MRK’s multiple.”

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