Merck & Co., Inc. (NYSE: MRK) has received a positive outlook from Citi, which recently raised its price target for the pharmaceutical giant to $95 from $84. This adjustment, announced on October 13, 2024, reflects the strength of Merck’s pipeline and its leading position in oncology, particularly with its flagship drug, Keytruda.
Merck is globally recognized for its robust oncology lineup, with Keytruda being the top-selling medicine worldwide. The company also produces treatments for diabetes and vaccines for human papillomavirus (HPV) and chickenpox. In recent years, Merck has actively expanded its portfolio through strategic acquisitions, enhancing its research and development capabilities.
During 2024, Merck acquired several firms, including Harpoon Therapeutics, Abceutics, EyeBio, and Modifi Biosciences. The company continued its acquisition strategy into 2025 with the notable purchase of SpringWorks Therapeutics for $3.4 billion. These investments are designed to bolster Merck’s innovative capacities and broaden its therapeutic offerings.
Analysts are optimistic about Merck’s future prospects, particularly with the potential of Keytruda Qlex and WinrevaIr, as well as the broader drug pipeline that investors are keenly watching. Merck’s consistent dividend growth also draws attention; the company has increased its payouts for 16 consecutive years. Currently, it pays a quarterly dividend of $0.81 per share, yielding 3.81% as of October 14, 2024.
While there is confidence in Merck’s investment potential, some analysts suggest that opportunities in the artificial intelligence sector may offer higher returns with limited downside risk. Investors are encouraged to explore various options, including AI stocks that show promising growth potential.
Merck’s ongoing commitment to innovation and its strong financial framework position it as a formidable player in the healthcare sector, appealing to both dividend-seeking investors and those looking for growth in pharmaceuticals.