Merck Gets a Chill Pill: Price Target Slashed!

Snack-Sized Version:

Merck & Co took a hit on May 14, 2025, as Citigroup downgraded its rating from “Buy” to “Neutral” and slashed its price target by nearly 27%, from $115.00 to $84.00. This downgrade signals a cautious shift in sentiment from Citigroup analyst Andrew Baum, who seems less confident in Merck’s near-term potential. Despite this slap on the stock’s wrist, other analysts remain more optimistic, with a one-year price target average of $105.54 and a bullish high estimate of $146.00. The consensus among 28 firms still places Merck in “Outperform” territory, with a rating of 2.1 on a scale where 1 is “Strong Buy”. GuruFocus adds fuel to the optimism with a GF Value estimate of $121.63, suggesting a 58.72% upside. Even with Citigroup’s cold feet, it seems Wall Street hasn’t ghosted Merck entirely—more like giving it a motivational timeout.

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Read the Full Meal:

Merck & Co hit a speed bump on May 14, 2025, courtesy of Citigroup, which downgraded the pharmaceutical titan from “Buy” to “Neutral.” Andrew Baum, the analyst behind the move, didn’t stop there—he also slashed the price target from $115 to $84. That’s a hefty 26.96% drop, the kind that makes portfolios whimper. This change reflects a more cautious view of Merck’s near-term performance, likely shaped by broader market dynamics or specific strategic uncertainties facing the company.

While Citigroup tapped the brakes, other analysts are still revving their engines. Based on data from 23 analysts, the average one-year price target for Merck sits comfortably at $105.54, with the most enthusiastic projecting as high as $146. That would represent a hefty gain from its current trading price of $76.63. So, while Citigroup may be playing defense, the rest of Wall Street seems content running an aggressive offense.

Further adding to the bullish chorus, 28 brokerage firms collectively rate Merck at a 2.1, signaling an “Outperform” recommendation. The rating scale goes from 1 (Strong Buy) to 5 (Sell), meaning Merck still earns more cheerleaders than critics. And then there’s the GuruFocus GF Value estimate—$121.63. If that plays out, investors could enjoy an impressive 58.72% upside, which is about as subtle as a mic drop.

So what does this all mean? In short: Citigroup may have just delivered a reality check, but the broader market hasn’t canceled Merck’s fan club. One bearish whisper doesn’t drown out a choir of bullish optimism. Investors might be scratching their heads, but they’re not exactly heading for the exits—yet. With conflicting signals swirling, it’s a classic Wall Street cocktail: a splash of skepticism, shaken with a twist of hope.