Barclays cuts Merck to 'equal weight', cites multiple risks ahead of CMD

Merck KGaA

19/08/2025 09:48

** Barclays downgrades Merck MRCG.DE to "equal weight" from "overweight", citing risks for the German technology company with little clarity expected before the Capital Markets Day in October

** Brokerage warns of impact from a potential early launch of drug Mavenclad's generics in the U.S amid a pending court decision

** Also points to a peer's Immunome drug that outperforms Merck's Ogsiveo in tests, causing uncertainty around expected sales

** Merck's healthcare, life science divisions are going through strategic reviews following departure of their heads; there is uncertainty over the succession of current CEO next year, adds brokerage

** Notes postponement of two new chips fabrication facilities by two Merck customers pushes out demand for its semiconductors solutions

** Barclay's forecasts 21.1 billion euros ($24.64 billion) in sales and EBITDA before exceptional items of 6 billion euro for FY 2025, in line with the biotechnology group's revised guidance

** Out of 20 analysts covering Merck, 14 rate the stock "strong buy" or "buy", 3 "hold", and 3 "sell" - LSEG data

($1 = 0.8562 euros)

 (Reporting by Emanuele Berro)

 ((Emanuele.berro@thomsonreuters.com))