Should You Buy Merck & Co Inc (MRK) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
107.920
1 Day change
0.48%
52 Week Range
112.900
Analysis Updated At
2026/01/26
Given the user's beginner investment level, long-term strategy, and available funds, Merck & Co Inc (MRK) is not a strong buy at this moment. While the company shows solid financial performance and has a promising pipeline, the lack of immediate positive catalysts, insider selling, and recent congressional sales suggest a cautious approach. Holding the stock or waiting for a better entry point is recommended.
Technical Analysis
The stock's technical indicators are mixed. The MACD is negatively expanding, signaling bearish momentum. RSI is neutral at 42.979, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its support level (S1: 107.574), but the overall trend lacks strong upward momentum.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Options data indicates a bullish sentiment with a lower put-call ratio, suggesting more interest in calls than puts. However, the implied volatility percentile (54) and rank (31.97) suggest moderate volatility expectations.
Moving Average Consensus
Sell
4
Buy
8
Positive Catalysts
2026/01/26 02:47:47
Strong Q3 2025 financial performance with YoY revenue growth of 3.72%, net income up 83.24%, and EPS up 87.10%.
Analysts are optimistic about Merck's late-stage pipeline and upcoming catalysts in 2026 and
The biotech sector is recovering, as indicated by the SPDR S&P Biotech ETF's 27% rise in 2025.
Neutral/Negative Catalysts
2026/01/26 02:47:47
Insider selling has increased significantly (278.89% in the last month).
Congress members have sold MRK stock in recent transactions, indicating caution.
Acquisition talks with Revolution Medicines ended without a deal, which could impact investor confidence.
The CDC's updated immunization guidelines may negatively affect Gardasil sales.
Financial Performance
Merck delivered strong Q3 2025 results with revenue of $17.28 billion (up 3.72% YoY), net income of $5.79 billion (up 83.24% YoY), and EPS of $2.32 (up 87.10% YoY). Gross margin improved to 78.1% (up 1.88% YoY), reflecting operational efficiency.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are generally optimistic about Merck's long-term prospects. Wolfe Research upgraded the stock to Outperform with a $135 price target, citing an attractive revenue bridge and catalyst path. UBS raised its price target to $130, highlighting improved fundamentals and M&A activity. However, TD Cowen maintains a Hold rating, citing concerns about growth outlook. The average price target is around $125-$135, indicating potential upside from the current price.
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 USD and a high forecast of 139 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 USD and a high forecast of 139 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
Averages
119.53
High
139
Current: 107.400
Low
95
Averages
119.53
High
139
Citi
Neutral
maintain
$110 -> $115
AI Analysis
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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