Analysts at Morgan Stanley have increased their price target for Merck & Co., Inc. (NYSE:MRK) from $98.00 to $100.00, as noted in a report released on Monday. This adjustment reflects an expected upside of approximately 19.15% based on the stock’s closing price prior to the announcement. Morgan Stanley has assigned an “equal weight” rating to the stock.
While Morgan Stanley’s forecast indicates optimism, other financial institutions have offered more cautious assessments recently. On September 17, 2023, Berenberg Bank downgraded Merck from a “buy” rating to a “hold” rating, lowering its price target from $100.00 to $90.00. Similarly, Wells Fargo & Company reduced its target price from $97.00 to $90.00 in a report published on July 30, 2023.
Citigroup initiated coverage on Merck on October 13, 2023, setting a target price of $95.00 with a “neutral” rating. Weiss Ratings reaffirmed a “hold (c-)” rating for the company on October 8, 2023. Currently, one analyst has given Merck a Strong Buy rating, five analysts have assigned a Buy rating, thirteen have rated it as Hold, and one has issued a Sell rating. According to data from MarketBeat, the average rating stands at “Hold” with a target price of $104.47.
Merck’s Financial Performance and Future Guidance
Merck reported a strong quarterly performance on October 30, 2023, with earnings per share (EPS) reaching $2.58. This figure surpasses the consensus estimate of $2.36 by $0.22. The company achieved a net margin of 25.79% and a return on equity of 41.05%. Revenue for the quarter totaled $17.28 billion, exceeding the expected $17 billion. This represents a 3.7% increase compared to the same quarter the previous year, during which Merck posted an EPS of $1.57.
For the fiscal year 2025, the company has set guidance for EPS between $8.930 and $8.980. Analysts predict that Merck will report an EPS of $9.01 for the current fiscal year.
Insider Trading and Institutional Investments
In recent company news, Executive Vice President David Michael Williams sold 8,614 shares of Merck on November 3, 2023, at an average price of $83.59, amounting to a total value of $720,044.26. Following this transaction, Williams retains 24,578 shares in the company, valued at approximately $2,054,475.02. This trade reflects a 25.95% decrease in his ownership of Merck stock. Insider ownership currently constitutes 0.13% of the total shares.
Several institutional investors have adjusted their holdings in Merck recently. Little House Capital LLC increased its stake by 1.2% in the second quarter, now owning 25,236 shares worth $1,998,000. Semus Wealth Partners LLC raised its stake by 8.2%, bringing its total to 5,039 shares, valued at $452,000. Longfellow Investment Management Co. LLC boosted its stake by 20.4%, now holding 19,376 shares worth $1,739,000. MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH increased its position by 9.8%, now owning 888,415 shares valued at $70,327,000. Amplius Wealth Advisors LLC raised its stake by 117.4%, holding 6,165 shares worth $488,000.
Overall, institutional and hedge fund investors control approximately 76.07% of Merck’s stock, reflecting significant confidence in the company’s future performance.
Merck & Co., Inc. continues to be a key player in the healthcare sector, providing a wide range of health solutions through its prescription medicines, vaccines, and consumer care products. The company operates across segments, including Pharmaceuticals and Animal Health, indicating a diverse portfolio that positions it well for future growth.
