Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

HSBC upgrades Merck stock to Buy on 2025 opportunities

Source Investing

Investing.com -- HSBC (LON:HSBA) analysts raised their rating on Merck &Company Inc (NYSE:MRK) shares to Buy from Hold while maintaining a price target of $130.

The move comes amid a growing market confidence in the company’s ability to navigate through upcoming patent expirations. Merck (NS:PROR)'s credible strategy for dealing with the loss of exclusivity (LOEs) for key drugs later in the decade has been a contributing factor to the upgrade.

Merck's expertise in oncology and a rich clinical pipeline are seen as key strengths. The company's success in developing cancer treatments, particularly in the field of oncology, has been well-documented.

However, HSBC notes that the true value of Merck's pipeline is expected to be recognized only when early evidence of clinical success emerges, which is not yet reflected in current estimates and stock multiples.

One of the main opportunities identified for Merck in 2025 is the stabilization of Gardasil revenues in China, updates on subcutaneous Keytruda, and the launch trajectory of Winrevir.

“There is a dearth of significant readouts for Merck’s pipeline for 2025 that could change the trajectory of growth,” HSBC analysts said in a report.

“However, updates on Phase II Antibody-Drug Conjugates (ADC) assets might help the market appreciate the potential of these pipeline assets whilst including them in valuation and estimates,” they added.

Key risks for Merck in 2025, according to HSBC, include any signs of Gardasil's growth slowing in developed markets and challenges with the subcutaneous version of Keytruda. If these materialize, they could cast doubt on the market's expectation that Keytruda's patent cliff will level off rather than decline sharply.

The investment bank has adjusted its estimates for Merck downward to account for lower growth potential in Gardasil, particularly regarding its adoption in second-tier Chinese cities and among males.

Even with these revised estimates, HSBC believes that Merck's current valuation offers a significant margin of safety, “especially given its strategy to extend its oncology portfolio’s earning potential in the medium term,” analysts noted.

Looking ahead to the first half of 2025, the bank notes that there may be few clinical catalysts capable of significantly changing Merck's equity story. Nonetheless, Keytruda combination clinical trials could help the company maintain its volume and revenue share in the immuno-oncology market.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Meta's AI bill just hit $145 billion — and it issued a new share class to pay for it Meta reported record third-quarter revenue of $64.60 billion, up 26% from a year earlier, and raised full-year 2026 capital expenditure guidance to $135-145 billion from $130-145 billion. To fund that build-out without touching Mark Zuckerberg's voting control, the company announced a 2-for-1 stock split that hands every Class A holder a new non-voting Class C share. Here are the four lines that matter, the peer group that is being re-rated alongside it, and the bull and bear cases.

Author Irene Q.

Oct 22, Thu

Meta reported record third-quarter revenue of $64.60 billion, up 26% from a year earlier, and raised full-year 2026 capital expenditure guidance to $135-145 billion from $130-145 billion. To fund that build-out without touching Mark Zuckerberg's voting control, the company announced a 2-for-1 stock split that hands every Class A holder a new non-voting Class C share. Here are the four lines that matter, the peer group that is being re-rated alongside it, and the bull and bear cases.

The Fed will sit still on October 28 — but 100 of 100 economists now expect a December hike A Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.

Author Irene Q.

Oct 22, Thu

A Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.

Gold falls to two‑month low below $4,050 as oil spikes Gold price (XAU/USD) falls to the lowest in more than two months near $4,025 during the early Asian session on Friday. The precious metal faces some selling pressure as escalating tensions in the Middle East send oil surging ahead of a Federal Reserve (Fed) policy meeting.

Author FXStreet

Oct 23, Fri

Gold price (XAU/USD) falls to the lowest in more than two months near $4,025 during the early Asian session on Friday. The precious metal faces some selling pressure as escalating tensions in the Middle East send oil surging ahead of a Federal Reserve (Fed) policy meeting.

Nasdaq closes at 26,008.86 — 8.9 points above 26,000, and the credit market never blinked The Nasdaq Composite fell 2.60% to 26,008.86 on October 22, its worst session since June, as Meta sank 6.98% on 2026 capex guidance of $135–145 billion. But the equal-weight S&P 500 rose 0.73%, high-yield credit was flat and 10-year yields fell 20 basis points. This was an AI de-rating, not a risk-off event — here is the transmission chain, the 29,000 / 28,200 levels and what would prove it wrong.

Author Irene Q.

Oct 23, Fri

The Nasdaq Composite fell 2.60% to 26,008.86 on October 22, its worst session since June, as Meta sank 6.98% on 2026 capex guidance of $135–145 billion. But the equal-weight S&P 500 rose 0.73%, high-yield credit was flat and 10-year yields fell 20 basis points. This was an AI de-rating, not a risk-off event — here is the transmission chain, the 29,000 / 28,200 levels and what would prove it wrong.

Brent tops $113 on Saudi supply risk — but the diesel line in the EIA report is the tell Brent's December contract settled at $113.17 on October 22, up 4.00% and the highest close since May 4, after Saudi Arabia restricted refined-product shipments. The same session's EIA report showed crude stocks down 3.06 million barrels and gasoline down 2.95 million — but distillates built 1.68 million. That single line decides whether $113 holds: here are the data, the 108.8 / 114.0 / 119.3 levels and the two scenarios.

Author Irene Q.

Oct 23, Fri

Brent's December contract settled at $113.17 on October 22, up 4.00% and the highest close since May 4, after Saudi Arabia restricted refined-product shipments. The same session's EIA report showed crude stocks down 3.06 million barrels and gasoline down 2.95 million — but distillates built 1.68 million. That single line decides whether $113 holds: here are the data, the 108.8 / 114.0 / 119.3 levels and the two scenarios.

Popular Symbols