Merck (MRK) PT Raised to $141 at BofA Securities

BofA Securities analyst Jason M. Gerberry raised the price target on Merck (NYSE: MRK) to $141.00 (from $130.00) while maintaining a Buy rating.

The analyst comments "We preview 2H26 Ph3 OptiTrop-Lung06 (OTL-06) data for SAC-TMT in PD-L1(-) NSCLC. OTL-06 is a China-only Ph3 run by MRK’s partner – the data are unlikely to support approval in developed markets but should inform if SAC-TMT has the potential to be a foundational lung cancer drug. We currently forecast $5bn in 2035E, risk-adj peak sales across indications with strong clinical support. PD-L1(-) NSCLC represents incremental $2-4bn upside, contingent on global development and competitor pipeline readouts. Our revised $5bn in SAC-TMT ‘35E sales is derived from four tumor settings we believe are clinically de-risked, including EGFR-mut lung, PD-L1 high lung, endometrial, and breast cancer; see report for rationale for program inclusion/exclusion from our peak sales forecast. FY2027/2028E EPS increase modestly (most SAC-TMT revenue in 2030s) and we raise our PO to $141 (prior $130) on higher 14x (prior 13x) on sector re-rating. Reiterate Buy."

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