Deutsche Bank Sees 26% Upside for Merck Despite Keytruda Patent Cliff
Deutsche Bank raised Merck’s price target by 26%, citing sustained Keytruda sales and contributions from its oncology and vaccine pipeline despite looming patent expiration. Analysts highlighted robust late-stage assets and a 3% dividend yield bolstering risk-adjusted returns on the updated forecast.
1. Price Target Raised by Analysts
Merck’s stock received a 26% price target increase as analysts point to sustained revenues from Keytruda and expanding indications within immuno-oncology. The update reflects confidence in Merck’s ability to offset patent losses with new sales drivers.
2. Pipeline Diversification and Dividend Support
Analysts emphasize the strength of late-stage oncology and vaccine candidates in Merck’s pipeline, noting these assets will drive growth beyond Keytruda. A dividend yield of around 3% further enhances risk-adjusted returns, underpinning the bullish outlook.