Merck & Co Inc has announced that its PD-1 inhibitor KEYTRUDA has received FDA approval for treating muscle-invasive bladder cancer patients who are ineligible for cisplatin-based chemotherapy. This approval is a significant milestone for the company, as it marks the first application of KEYTRUDA in this patient population.
The approval is based on data from the KEYNOTE-905 trial, which demonstrated a 60% reduction in event-free survival risk and a 50% improvement in overall survival for patients receiving the combination treatment compared to surgery alone. This breakthrough offers hope to a patient group that has long lacked new treatment options and could influence future treatment guidelines.
Investors reacted positively to the news, contributing to a +3.03% increase in Merck's stock price, which has reached a 20-day high. This upward movement comes amid a broader market context where major benchmarks are trading sideways with mixed signals, highlighting the significance of Merck's development in the biopharmaceutical sector.
Wall Street analysts forecast MRK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MRK is 119.53 USD with a low forecast of 95.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
Wall Street analysts forecast MRK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MRK is 119.53 USD with a low forecast of 95.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Buy
5 Hold
0 Sell
Moderate Buy
Current: 107.400
Low
95.00
Averages
119.53
High
139.00
Current: 107.400
Low
95.00
Averages
119.53
High
139.00
Citi
Neutral
maintain
$110 -> $115
2026-01-27
New
Reason
Citi
Price Target
$110 -> $115
AI Analysis
2026-01-27
New
maintain
Neutral
Reason
Citi raised the firm's price target on Merck to $115 from $110 and keeps a Neutral rating on the shares. The firm adjusted targets in the biopharma group as part of a Q4 preview. Estimates that are "beatable" and lower policy risk should create a favorable setup in 2026 for the group, the analyst tells investors in a research note.
TD Cowen
Steve Scala
Hold
maintain
$100 -> $120
2026-01-20
Reason
TD Cowen
Steve Scala
Price Target
$100 -> $120
2026-01-20
maintain
Hold
Reason
TD Cowen analyst Steve Scala raised the firm's price target on Merck to $120 from $100 and keeps a Hold rating on the shares. The firm said Merck is a great company, but barring bolstering of growth outlook, they think it is unlikely to be a top pharma stock.
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BofA
Underperform
maintain
$24 -> $27
2026-01-20
Reason
BofA
Price Target
$24 -> $27
2026-01-20
maintain
Underperform
Reason
BofA raised the firm's price target on Moderna (MRNA) to $27 from $24 and keeps an Underperform rating on the shares. The company released five-year data for intismeran in combo with Merck's (MRK) Keytruda in high-risk melanoma patients, the analyst tells investors in a research note. While there is upside risk into the firm still notes historical limitations of pembro combos, logistical challenges, and a higher bar for success, adding that the higher price target comes on higher peak sales expectations for intismeran in adjuvant melanoma.
Wolfe Research
Alexandria Hammond
Peer Perform -> Outperform
upgrade
$135
2026-01-08
Reason
Wolfe Research
Alexandria Hammond
Price Target
$135
2026-01-08
upgrade
Peer Perform -> Outperform
Reason
As previously reported, Wolfe Research analyst Alexandria Hammond upgraded Merck to Outperform from Peer Perform with a $135 price target. After modeling in Merck's late-stage pipeline assets, accounting for label expansion opportunities, and factoring in prescriber feedback, the firm view the five-year revenue bridge as "attractive" and would argue the stock is "poised for a breakout" following accretive M&A and ahead of an attractive catalyst path.
About MRK
Merck & Co., Inc. is a global health care company that delivers health solutions through its prescription medicines, including biologic therapies, vaccines and animal health products. Its Pharmaceutical segment includes human health pharmaceutical and vaccine products. The Company sells its human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers. It sells these human health vaccines primarily to physicians, wholesalers, distributors and government entities. Its Animal Health segment discovers, develops, manufactures and markets a range of veterinary pharmaceutical and vaccine products, as well as health management solutions and services, for the prevention, treatment and control of disease in all livestock and companion animal species. Its products include KEYTRUDA (pembrolizumab) injection, for intravenous use; WELIREG (belzutifan) tablets, for oral use; Ohtuvayre (ensifentrine) and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
