Deutsche Bank Raises Merck Price Target to $150, Sees Growth Post-Patent Cliff
Deutsche Bank upgraded Merck to Buy and raised its price target to $150 from $115, citing undervalued growth beyond Keytruda’s patent cliff. Merck forecast 2026 revenue of $65.5–67.0 billion, an implied $2.5 billion headwind that misses the $67.6 billion analyst consensus.
1. Upgrade and Price Target
On February 13, Deutsche Bank elevated Merck’s rating from Hold to Buy and increased the price target to $150 from $115, arguing that concerns over Keytruda’s upcoming patent expiry overlook continued upside potential.
2. Revenue Forecast and Headwinds
Merck projects 2026 revenue between $65.5 billion and $67.0 billion, below the $67.6 billion analyst consensus, and anticipates a $2.5 billion headwind driven by generic competition, Medicare price negotiations and reduced Lagevrio sales.
3. Growth Drivers Beyond Keytruda
Excluding Keytruda, Merck highlights visible growth drivers including a trough earnings formation, expansion in oncology and vaccine portfolios, and late-stage pipeline assets poised to support revenue post-patent expirations.