Merck Stock Looks Undervalued as KEYTRUDA Growth and Pipeline Offset Near-Term Headwinds

2 hours ago 1

Vandita Jadeja

Tue, May 5, 2026 astatine 12:17 PM CDT 4 min read

Quick Read

Merck (MRK) reported Q1 2026 gross of $16.29B, up 4.87% year-over-year and beating statement estimates, with KEYTRUDA income jumping 12% to $8.03B and WINREVAIR surging 88% to $525M contempt a $9.0B acquisition complaint from the Cidara deal.
Merck’s heavy Phase 3 oncology pipeline with near-term catalysts including WELIREG + KEYTRUDA adjuvant RCC determination successful June and 3 further PDUFA dates done October positions the institution for sustained maturation arsenic it manages done KEYTRUDA patent cliff risks and GARDASIL weakness successful China.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Merck wasn't 1 of them. Get them present FREE.

Merck (NYSE:MRK) delivered its 4th consecutive net beat, but shares slipped connected the net report. With acquisition charges clouding the quarter, present is wherever the banal heads next.

The 24/7 Wall St. Price Target for Merck Is $135.70

Our 24/7 Wall St. terms people for Merck is $135.70 implicit the adjacent 12 months, implying 24.29% upside from the existent $109.18. Our proposal is buy, with a assurance level of 90%. A antiaircraft healthcare profile, heavy Phase 3 pipeline, and banal trading good beneath its 52-week precocious make an charismatic setup for diligent investors.

An infographic titled 'MERCK 12-Month Price Prediction' showing 'Our Price Target'. It displays the existent terms of $109.18 arsenic of May 1, 2026, with an arrow indicating a +24.29% upside to a people terms of $135.70, with a 'BUY' proposal and 90% confidence. A conception 'HOW WE GOT THERE' shows barroom charts for Trailing P/E-Based Price ($109.18), Forward P/E-Based Price ($125.43), Analyst Target Weight (0.3), and Weighted Base Price ($123.47). Another conception 'OUR ADJUSTMENTS' details proprietary 247Factor adjustments starting from Weighted Base of $123.47, with greenish bars for affirmative adjustments (Sector Momentum, Analyst Consensus, Volatility), a reddish barroom for antagonistic accommodation (Earnings Growth), starring to a 247Factor of 1.099 and a Final Target of $135.70. The bottommost portion presents 'BULL CASE' scenarios (Pipeline Depth & Keytruda Growth +12%, WINREVAIR Acceleration +88%, Upcoming Phase 3 Data Readouts) with a people of $141.16, and 'BEAR CASE' scenarios (Keytruda Patent Cliff Risk, China Sales Decline -47%, Failed Phase 3 Oncology Trials) with a people of $114.09. The infographic concludes with 'THE BOTTOM LINE' stating a 'BUY' recommendation, a $135.70 Target, and +24.29% Upside, attributed to 24/7Wall St.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Merck wasn't 1 of them. Get them present FREE.

Metric

Value

Current Price	$109.18
24/7 Wall St. Price Target	$135.70
Upside	24.29%
Recommendation	BUY
Confidence Level	90%

A Quarter Dominated by KEYTRUDA and Acquisition Charges

Merck reported Q1 2026 gross of $16.29 billion, increasing 4.87% twelvemonth implicit twelvemonth and beating statement by 2.77%. Non-GAAP EPS of -$1.28 topped the -$1.47 estimate, a 13.15% beat. The header nonaccomplishment reflects a $9.0 cardinal Cidara acquisition charge, with operating show remaining intact.

KEYTRUDA generated $8.03 cardinal (up 12%), portion WINREVAIR jumped 88% to $525 million. Management raised full-year guidance to $65.80 cardinal to $67 cardinal successful gross and $5.04 to $5.16 successful non-GAAP EPS.

Despite the beat, shares slipped 1.6% connected the time and are down 9.24% implicit the past month, though up 32.8% implicit the past year.

The Case for $141 and Beyond

The bull thesis rests connected pipeline depth. The CEO highlighted "we are moving with velocity to alteration our portfolio to 1 with a diversified acceptable of maturation drivers crossed a wide acceptable of therapeutic areas... arsenic we participate a peculiarly robust play of Phase 3 information readouts."

Near-term catalysts see the June 19, 2026 WELIREG + KEYTRUDA adjuvant RCC PDUFA, the August 17, 2026 KEYTRUDA + Padcev MIBC decision, and the October 10, 2026 ifinatamab deruxtecan PDUFA.

Read Entire Article