BNP Paribas ups Merck KGaA seeing gains 'across the board'

Merck KGaA

03/12/2025 07:55

** BNP Paribas double-upgrades Merck KGaA MRCG.DE to "outperform" from "underperform", citing an improving narrative across the divisions of German life sciences firm

** The brokerage points to over 10 billion euros ($11.65 billion) in balance sheet "firepower", while it expects an incoming CEO to accelerate portfolio management efforts

** It says upside in its healthcare unit is underappreciated, considering its fertility business and a 15% royalty from atacicept, an artificial protein used to treat multiple sclerosis and lupus, "that is ignored by the street"

** The life sciences biz outlook is also improving, with consensus forecasts now offering limited downside risk and potential for divestments of low-margin units, BNP says

** Out of 20 analysts covering Merck KGaA, 14 rate it "strong buy"/"buy", ​three "hold" and three "strong sell"/"sell" - LSEG data

($1 = 0.8583 euros)

(Reporting by Maria Rugamer)

((Maria.Rugamer@thomsonreuters.com))