Merck KGaA: stock stays afloat thanks to UBS upgrade

(CercleFinance.com) - Merck KGaA's shares are one of the few to rise on the Frankfurt Stock Exchange's DAX index on Monday, buoyed by an upgrade by analysts at UBS, who believe that the group's valuation has recently "normalised".


The broker believes that after a significant revaluation - which it attributes to the appearance of the Covid-19 pandemic - the share price now incorporates the scenario of a slowdown in the engine that the crisis has constituted until now.

So much so that, UBS says that the stock is now trading below its sum-of-the-parts value for 2022, a feature that already characterised the stock and its status as a conglomerate prior to the health crisis.

As a result, the broker has upgraded its rating on the stock from "sell" to "neutral", with an increased target price of 175 euros, vs. 170 euros.

After midday today, its share was up about 0.3%, even though YTD it is still down 21%.



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