Merck KGaA: share price down, analyst lowers target

(CercleFinance.com) - The share price is down by almost 1%, as UBS has lowered its target price.


UBS reiterates its buy rating on the stock, but lowers its target price to E178 (from E186), which still represents an upside potential of 18%.

'We are revising our target rating after the failure of xevinapant in head and neck cancer. We continue to value bioprocesses and semiconductor recovery engines in the second half of the year and in 2025' says UBS.

Merck has announced the discontinuation of a phase III clinical trial evaluating an experimental treatment for head and neck cancer. The German group explains that it took its decision following an opinion from the study's independent monitoring committee, which considered that the trial was unlikely to achieve its primary objective, namely to improve patient survival.

Merck KGaA has confirmed its qualitative forecasts for 2024, with a return to organic growth. It forecasts revenues of €20.6 to €22.1 billion, adjusted EBITDA of €5.7 to €6.3 billion, and adjusted EPS of €8.05 to €9.10.

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