Wells Fargo’s $150 Price Target vs. 39% Drop in Gardasil Sales
Merck's Gardasil sales plunged 39% year-over-year to $5.2 billion in 2025, driven by weak demand in China and Japan that prompted paused shipments and mounting inventories. Wells Fargo maintained an Overweight rating and set a $150 price target, indicating roughly 29% upside from the ~$115.50 stock level.
1. Wells Fargo Overweight Rating and Price Target
Wells Fargo maintained its Overweight rating on Merck and reiterated a $150 price target, reflecting confidence in the company's growth prospects. The target suggests about 29% upside from the current share price near $115.50.
2. Gardasil Sales Challenges
Merck's Gardasil vaccine experienced a 39% year-over-year sales drop in 2025, falling to $5.2 billion. Weak demand in China and Japan led the company to pause shipments to China due to high inventory levels at its partner.
3. Stock Performance and Market Metrics
Merck shares trade around $115.48, with a market capitalization of approximately $285.5 billion. Recent daily trading volume reached 687,521 shares, and the stock has fluctuated between $73.31 and $125.14 over the past year.
4. Revenue Outlook and Risks
Management does not anticipate Gardasil sales to rebound in 2026, potentially continuing to pressure overall revenue. Investors will watch whether other drug and vaccine segments can offset the shortfall.