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Merck KGaA: Strategic Growth Amidst Challenges Supports Buy Rating

In a report released today, Dylan Van Haaften from Stifel Nicolaus maintained a Buy rating on Merck KGaA (0O14Research Report), with a price target of €153.00.

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Dylan Van Haaften’s rating is based on several key considerations. Despite some challenges, Merck KGaA’s recent quarterly results were in line with expectations, particularly in terms of top-line revenue and EBITDA. The company has shown encouraging progress in its Life Sciences Process Solutions segment, which experienced strong organic growth driven by a recovery in pharmaceutical production demand.
While there are some headwinds, such as foreign exchange impacts and tariff uncertainties, the company’s guidance adjustments reflect a cautious but strategic approach to navigating these challenges. The Healthcare segment also demonstrated positive growth, and the Electronics division, although facing some profitability concerns, showed modest growth due to AI-driven demand. These factors, combined with a favorable upside to the price target, underpin the Buy rating given by Dylan Van Haaften.

In another report released on May 12, Barclays also maintained a Buy rating on the stock with a €160.00 price target.

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