Merck Stock: Recovery Gains Momentum Amid Growth Strategy

Merck shares demonstrated significant resilience with a 2.0% increase to €139.80 in recent XETRA trading, continuing their recovery trajectory after hitting a 52-week low of €132.80 in February. Despite this positive momentum, the stock remains approximately 21% below its late August 2024 peak of €177.00. The pharmaceutical and technology group reported encouraging full-year results, with organic revenue growth of 2% to €21.2 billion and adjusted EBITDA rising by 6.9% to €6.1 billion. The company's fourth quarter performance was particularly strong, showing organic revenue growth of 3.8% and an impressive 19.7% jump in adjusted EBITDA. Despite a slight 1.7% decrease in net profit to €2.79 billion, Merck plans to maintain its dividend at €2.20 per share, demonstrating confidence in its financial position.

Optimistic Outlook for 2025

Looking ahead, the Darmstadt-based company projects continued growth in 2025, forecasting organic revenue increases between 3% and 6% to reach €21.5-22.9 billion. Adjusted EBITDA is expected to grow organically by 3% to 8%, reaching €6.1-6.6 billion. Analysts remain bullish on Merck's prospects, setting an average price target of €183.14, significantly above current trading levels. The company's strategic investments in semiconductor materials for AI chip systems are proving advantageous, while its pharmaceutical segment benefits from strong sales of key products. Following a prolonged slowdown, the laboratory segment has also shown clear signs of recovery since mid-2024.