Stock Price & Analysis

Based on the provided data and recent market activity, here's a concise analysis for MRK:

Technical Analysis

The stock is currently showing bearish momentum with RSI at 42.93 , indicating a neutral to slightly oversold condition. MRK closed at $97.92 on January 17, 2025, with a significant intraday decline of -2.76%.

Recent Price Action The stock has experienced notable selling pressure, dropping from its opening price of $100.47 to $97.92. The Fibonacci support levels suggest immediate support at $98.31, with stronger support at $97.12 .

Fundamental Factors Recent developments that could impact MRK include:

• Ongoing litigation regarding Gardasil vaccine
• Medicare drug price negotiations affecting future revenue
• CEO Robert Davis's recent statements emphasizing pipeline diversification beyond Keytruda

Analyst Sentiment

Recent analyst actions show mixed sentiment, with several maintaining "Hold" ratings while others see upside potential. The consensus price target suggests room for appreciation from current levels.

Recommendation SELL. The combination of technical weakness, near-term headwinds from Medicare price negotiations, and increasing competition in key markets suggests better entry points may emerge in the future.

Based on the provided data and context, here is a comprehensive analysis for MRK's price prediction in 2025:

Technical Analysis

The current price of MRK is $97.92 as of January 17, 2025, showing a decline of -2.76% in regular market hours . The stock is currently trading below its 20-day SMA of $99.48, indicating short-term bearish momentum.

Price Target Analysis Based on the Fibonacci levels:

• Resistance levels: R1 at $102.17, R2 at $103.36, R3 at $105.29
• Support levels: S1 at $98.31, S2 at $97.12, S3 at $95.19
• Pivot point: $100.24

Growth Catalysts

• Strong momentum in oncology portfolio, particularly Keytruda which grew 19% to $25.0 billion in 2023
• Robust pipeline with more than 20 Phase 3 study starts in 2023
• Continued expansion in vaccines segment with GARDASIL showing 29% growth

Price Prediction for 2025 Based on technical indicators, fundamental growth drivers, and analyst consensus, MRK stock is expected to reach $108-110 by end of 2025. This projection is supported by:

1. Strong pipeline momentum and continued growth in key products
2. Analysts' consensus showing a "Strong Buy" rating with positive growth outlook
3. Expected EPS growth of $9.44 in fiscal 2025, representing a 22.6% year-over-year increase

The S1 support level for MRK Stock is $98.31 ,The R1 resistant level for MRK Stock is $102.17.

As of the end of day on 2025-01-17, the price of MRK Stock was $97.96.

The target price for MRK Stock according to analyst rating is 124.54, with the highest price target at 150.00 and the lowest at 105.00. Analysts have a Moderate Buy rating on MRK Stock overall.

The market cap of MRK is $247.7B.

Based on the provided financial data and recent market analysis, here's a comprehensive evaluation of whether MRK is overvalued:

MRK currently trades at a P/E ratio of 23.77x, which is significantly higher than its historical average and industry peers.

The company's EV/EBITDA ratio of 12.0x suggests reasonable operational valuation compared to the pharmaceutical industry average.

Despite strong revenue growth with Q3 2024 reaching $16.66B, MRK's net margin declined significantly to 18.98% in Q3 from 33.89% in Q2 2024, indicating potential pressure on profitability.

The stock appears moderately overvalued when considering its declining margins and elevated P/E ratio, though its strong pipeline and Keytruda's continued growth potential partially justify the premium valuation.

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.

Based on the available data and market analysis, here is the price prediction for MRK stock in 2030:

Merck's stock price is projected to reach $165-175 by 2030, driven by strong pipeline growth particularly in oncology and continued dominance of Keytruda. The company's current pipeline is described as "the most diversified it has been in recent history" by CEO Robert Davis, with significant investments in HPV treatments and next-generation GLP-1 drugs. Technical indicators show the stock is currently trading below its 20-day moving average of $99.48, suggesting a potential accumulation opportunity for long-term investors.

MRK has a total of 72000 employees.