The US bank JPMorgan Chase & Co. confirmed on April 28, 2025, its “Overweight” rating for the Merck KGaA stock with an unchanged price target of 190 Euros. This rating follows the official confirmation from Merck that it intends to acquire the US biotech company SpringWorks Therapeutics – a strategic move to strengthen its portfolio in the area of innovative therapies.
Key Aspects of the Analysis
- Price Target vs. Current Status: At the time of the analysis, the stock was trading at 120.95 Euros (XETRA trading), implying an upside potential of ~57% compared to the price target.
- Year-to-Date Performance: Since the beginning of 2025, the stock has already lost 13.5% in value, with uncertainties surrounding the SpringWorks acquisition partly to blame.
- Trading Volume: By 10:17 AM on the day of the analysis, 33,757 shares had already been traded, indicating sustained interest despite short-term weakness.
Strategic Importance of the SpringWorks Acquisition
The planned acquisition aims to expand Merck’s presence in biotechnology – particularly in the field of rare diseases and oncology. Analyst Richard Vosser emphasizes the long-term growth perspective through portfolio expansions and synergies in the drug pipeline.
Implications for Private Investors in the German-speaking Region
1. Opportunities-Risk Profile: The high price target reflects analysts’ confidence in Merck’s ability to positively leverage the DAX context through acquisitions and internal innovations.
2. Time Horizon: The rating is based on medium- to long-term expectations; short-term volatility may persist due to acquisition speculation.
3. Industry Context: As a DAX heavyweight, Merck structurally benefits from the German market environment but requires international expansion to achieve its targets – this is where the SpringWorks strategy comes into play.
For investors, a nuanced consideration is advisable: while the price target appears attractive, quarterly figures for acquisition financing and regulatory approval processes should be carefully monitored.