Merck (NYSE: MRK) Stock Analysis: Price Target Raised on Strong Q3 Earnings

By Stuart Mooney2 Nov, 16:11From Financial Modeling Prep

Key points

Merck's strong Q3 performance saw adjusted earnings of $2.49 per share and revenue of $18.09 billion, significantly exceeding analyst expectations.
Analysts from Cantor Fitzgerald and Guggenheim raised their price targets for Merck (NYSE: MRK) stock, reflecting increased confidence in the pharmaceutical giant's outlook.
While expanding its cancer treatment pipeline and raising 2026 sales guidance to $66.8 billion–$67.3 billion, Merck anticipates future challenges from generic competition and higher research and development spending.

Merck (NYSE: MRK) is a drugmaker whose products include cancer treatments, vaccines, and animal health medicines. Carter Gould of Cantor Fitzgerald raised its price target to $155.00. At the $147.94 share price when the target was published, that implied about 4.80% upside. A price target is an analyst’s estimate of where a stock may trade.

Merck’s third-quarter results give context for the higher target. Adjusted earnings reached $2.49 per share, above the $2.08 analysts expected. Revenue rose to $18.09 billion, beating the $17.31 billion estimate, with contributions from new products, oncology, and animal health.

Some of that revenue beat reflects when customers placed orders rather than a lasting increase in demand. Guggenheim analyst Vamil Divan estimated that purchase timing added about $550 million to sales. Guggenheim kept its Buy rating and raised its price target to $171.00 from $170.00, as highlighted by Benzinga.

KEYTRUDA franchise sales grew 6% to $8.60 billion, while WINREVAIR revenue rose 93% to $694 million. Merck also raised its 2026 sales guidance to $66.8 billion–$67.3 billion. Guidance is management’s estimate of future results; it is not a guarantee.

Merck is developing more cancer treatments, including sac-TMT and intismeran, as it works to rely less on KEYTRUDA. The company expects modest growth in 2027 and cites more than $2 billion in pressure from generic competition, along with vaccine market challenges and higher research spending.