FRANKFURT (dpa-AFX) - Following a reversal by the analyst at Exane BNP Paribas, shares of Merck KGaA surged by 3.9 percent on Wednesday to 121.30 euros. This recovery pushed the stock above its exponential 200-day moving average. A previous breakout attempt in mid-November had failed, as the shares stalled near the interim high from May at around 125 euros.
Exane analyst Peter Verdult has now injected new momentum into the stock. He significantly raised his price target to 145 euros and shifted his previous negative rating to an "Outperform" recommendation. Verdult noted that the investment case for the Darmstadt-based company has improved across all three business segments: Life Science, Healthcare, and Electronics. In the semiconductor business, he sees signs of a bottoming out, highlighting the substantial share of AI chips and other advanced semiconductors.
Additionally, Merck KGaA boasts considerable financial strength, with more than 10 billion euros at its disposal. The new CEO is expected to accelerate the restructuring of the company's portfolio.
At 145 euros, the shares would return to their highest level since early February. The all-time high was set at 231.50 euros at the end of 2021.
