Merck Buy Rating Reiterated as sac-TMT Data De-Risk Oncology Pipeline; 12-Month Price Target Maintained at $137

Goldman Sachs analyst Asad Haider maintained a Buy rating on Merck & Company yesterday and set a price target of $137.00.

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Asad Haider has given his Buy rating due to a combination of factors, chiefly the de-risking of Merck’s key oncology pipeline asset sac-TMT through its partner Kelun Biotech. The positive Phase 3 OptiTROP-Lung06 results in first-line non-squamous NSCLC with low PD-L1 expression, showing longer progression-free survival and an encouraging overall survival trend versus the standard of care Keytruda-plus-chemotherapy regimen, bolster confidence in this combination strategy.

These data build on prior success from OptiTROP-Lung05 and provide direct clinical evidence that sac-TMT plus Keytruda can outperform existing Keytruda-based therapy, addressing a critical segment of the lung cancer market. Supported by this strengthened pipeline outlook, Haider maintains a 12-month price target of $137, reflecting his view that the risk-reward profile remains attractive despite ongoing concerns about Keytruda loss-of-exclusivity dynamics, vaccine performance, regulatory uncertainties, and broader market risks.

In another report released yesterday, Scotiabank also maintained a Buy rating on the stock with a $155.00 price target.