Stock Price & Analysis

Based on the analysis of MRK's current price trends, technical indicators, and fundamental factors, the stock is nearing a support level with potential upside. Buy MRK as it approaches the Fibonacci support level of 93.17 with analyst price targets suggesting upside.

Price Prediction for MRK Stock in 2025

Based on current trends and analysis, MRK stock is expected to reach $110 by year-end 2025, driven by strong performance of Keytruda and pipeline growth. However, challenges like Gardasil sales decline and competition could limit upside, with a bearish target of $85. Analysts predict an average price target of $125, reflecting optimism in Merck's long-term growth.

The S1 support level for MRK Stock is $87.44 ,The R1 resistant level for MRK Stock is $94.18.

As of the end of day on 2025-04-01, the price of MRK Stock was $87.1.

The target price for MRK Stock according to analyst rating is 111.88, with the highest price target at 138.00 and the lowest at 95.00. Analysts have a Moderate Buy rating on MRK Stock overall.

The market cap of MRK is $220.1B.

Analysis and Insights

To determine if Merck & Co Inc (MRK) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

MRK's current valuation metrics suggest it is not overvalued:

• P/E Ratio: 14.77 (lower than the industry average of 20-25)
• EV/EBITDA: 9.55 (moderate and in line with industry peers)
• P/S Ratio: 3.94 (reflects reasonable pricing relative to revenue)
• P/B Ratio: 5.43 (slightly above industry average but not excessively high)
• Dividend Yield: 2.27% (consistent and attractive for income investors)

Financial Performance:

MRK has demonstrated strong financial health:

• Revenue Growth: Steady increase in quarterly revenue, with Q4 2024 at $15.624B.
• Net Income: Consistently profitable, with Q4 net income at $3.743B.
• Gross Margin: 76.27% (indicative of strong pricing power and cost management).
• ROE: 33.89% (high return on equity, signaling efficient operations).

Market Sentiment and Analyst Ratings:

Analyst sentiment is mixed, with recent downgrades citing concerns over Gardasil sales and Keytruda's loss of exclusivity. However, many maintain a "Buy" rating, highlighting MRK's strong pipeline and execution capabilities.

Technical Analysis:

The stock is trading near its 200-day SMA, with an RSI of 49.47, indicating a neutral position. The MACD is slightly positive, suggesting a weak upward trend.

Conclusion:

Based on the analysis, MRK does not appear overvalued. Its valuation metrics are reasonable, financials are strong, and while risks exist, the company's diversified portfolio and strong product lineup position it well for long-term growth.

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Merck & Co., Inc. is a global health care company. It offers health solutions through its prescription medicines, including biologic therapies, vaccines and animal health products. The Company’s Pharmaceutical segment includes human health pharmaceuticals and vaccine products. Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. It sells these human health pharmaceutical products to drug wholesalers and retailers, hospitals, government agencies and managed health care providers. Its Animal Health segment discovers, develops, manufactures and markets a range of veterinary pharmaceutical and vaccine products, and health management solutions and services, for the prevention, treatment and control of disease in all livestock and companion animal species. The Company’s lead candidate, MK-6070, is a T-cell engager targeting delta-like ligand 3 (DLL3), an inhibitory canonical Notch ligand.

Merck (MRK) stock is predicted to reach $125.95 by 2030. This forecast is supported by strong revenue growth driven by Keytruda sales and a robust pipeline of new drugs.

MRK has a total of 72000 employees.