Merck (MRK) Builds Post-Keytruda Growth Plan, BMO Upgrades to Outperform

Merck & Co. Inc. (NYSE:MRK) ranks among the most active blue chip stocks to buy now. With a raised price target of $130 per share, BMO Capital Markets upgraded Merck & Co. Inc. (NYSE:MRK) to Outperform on December 18, stating that the pharmaceutical company is working on a portfolio that can continue growth beyond the loss of exclusivity for the widely used cancer medication Keytruda later in the decade.

Pixabay/Public Domain

Merck & Co. Inc. (NYSE:MRK) reported a Gardasil sales beat in the third quarter of fiscal 2025, its first in over a year, easing a major stock overhang. Gardasil sales estimates for fiscal 2026 have already been drastically reduced during the last two years, according to BMO, thus resetting expectations and potentially allowing for upside.

BMO also predicts higher commercial performance from emerging products like Enflonsia, Reblozyl, and Welireg. The firm cited a significant difference between its own 2026 sales expectation for Enflonsia and current consensus forecasts, stating that previous success with similar medications warrants an improved revenue outlook.

Merck & Co. Inc. (NYSE:MRK) is a healthcare company that offers human health pharmaceuticals, veterinary pharmaceuticals, vaccines & health management solutions and services.

While we acknowledge the potential of MRK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRK and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.