SHARE IN FOCUS: Merck KGaA benefit from Citi recommendation

FRANKFURT (dpa-AFX) – The shares of Merck KGaA (Merck) headed for resistance around 165 euros with an increase of 1.3 percent to 162.50 euros on Thursday following a recommendation from Citigroup. Although the shares briefly managed to rise above this mark in June and around the turn of the month from August to September, they fell below it again just as quickly. With the plus, the Merck papers led the weak DAX (DAX 40).

Peter Verdult, analyst at US bank Citigroup, believes the shares will continue to make a big jump in the medium term. He now raised his price target from 200 to 210 euros and upgraded the shares from “Neutral” to “Buy” after the poor price development of the past few months. The expert wrote in a study that the prospects for the healthcare business have improved.

Investors could also bet on a recovery in business with the semiconductor industry. And the potential cancer drug xevinapant, for which phase III interim data is expected soon, could also have plenty of potential.

Despite the gains on Thursday, the price of Merck KGaA shares has lost around ten percent this year. The paper is therefore one of the weakest stocks in the DAX this year, having gained around twelve percent since the end of 2022 and has almost made up for its losses from the previous year. Last year, the share had already lost more than the leading German index, with a discount of 20 percent.

At the end of 2021, the share reached its highest level in its stock market history at a price of EUR 231.50 and has since fallen by around 30 percent. It is currently worth as much as it was in mid-2021. In the medium term, however, it is one of the biggest winners on the German stock market since September 2013, the price has almost tripled. Over the past twenty years, the profits add up to 1000 percent.

With a market value of around 70 billion euros, Merck is now one of the most valuable companies in Germany./mis/zb/mis

Selected leverage products on Merck

With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on Merck