Deutsche Bank has adjusted its price target for Merck KGaA (MRK: GR) (OTC: MKGAF), reducing it to €180.00 from the previous €188.00, while retaining a Buy rating on the stock.
The modification comes with anticipations that the company will reaffirm its 2024 guidance despite potential slight underperformance in the Life Science segment's exit rate, which is forecasted at 6% compared to the projected 7-10%.
The analyst from Deutsche Bank also predicts that Merck may offer an early insight into its 2025 outlook, with particular focus on the Life Science business as it gradually recovers.
It is suggested that current consensus expectations for this segment might be somewhat overestimated. There is also a general anticipation among investors that the medium-term guidance for the Pharma segment will be adjusted to flat growth due to recent setbacks in the pipeline, a shift from the previously expected mid-single-digit growth.
Additionally, the company has indicated a more cautious stance concerning the recovery of the Life Science segment and the Chinese market at a recent competitor conference.
Consequently, it is projected that the medium-term guidance for the Life Science segment will be revised to a growth range of 6-9%, a slight decrease from the former 7-10% figure.
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