Cantor Fitzgerald Sees Deal Activity and Pipeline Progress as Key for Merck’s (MRK) Next Phase

Merck & Co., Inc. (NYSE:MRK) is included among the 12 Best Stocks to Buy for the Long Term.

On January 27, Cantor Fitzgerald boosted its price target on Merck & Co., Inc. (NYSE:MRK) to $116 from $83 but kept its Neutral stance on the stock. The firm said near-term guidance is likely to come in below what Wall Street is expecting, which could create some pressure on the shares in the short run. Looking further out, Cantor believes Merck’s results in 2026 will hinge on whether the company can add to its business through deals and continue lowering risk in its late-stage pipeline. Those same themes were already a big reason the stock performed well in 2025.

At the same time, a Wall Street Journal report said Merck has stepped away from talks to acquire Revolution Medicines, according to people familiar with the situation. The discussions had centered on a potential deal that could have valued the cancer-focused biotech at around $30 billion. Earlier this month, the Journal reported that AbbVie was also in advanced talks with Revolution, though AbbVie later said it “is not in discussions” with the company.

Merck CEO Robert Davis spoke about the company’s deal-making approach at the J.P. Morgan Healthcare Conference earlier this month. He said Merck has been focusing mainly on transactions worth up to $15 billion, while remaining open to larger deals if they are the right strategic fit. In this case, people familiar with the talks said discussions with Revolution cooled after the two sides couldn’t agree on valuation.

Merck & Co., Inc. (NYSE:MRK) is a global healthcare company with a wide-ranging portfolio that includes prescription drugs, biologic therapies, vaccines, and animal health products.

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