Merck KGaA: Berenberg starts coverage with 'hold' rating
(CercleFinance.com) - Berenberg has initiated coverage of Merck KGaA's shares with a "hold" rating and a target price of 150 euros per share, citing the stock's "high valuation.
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In a note to clients, the German broker said Merck is an innovative, agile company exposed to three long-term growth trends: novel drug manufacturing processes, drugs for the aging population and the digital data explosion.
On that basis, the science and technology group has created a stable, diversified business on track to deliver 5% per year top-line and 8% per year bottom-line growth over 2020-2025, it added.
"However, we conclude that the share price is up to speed with these attractive qualities, following 33% share price performance in 2020 despite EPS forecasts slightly declining," Berenberg pointed out.
Merck shares are currently down 0.2% in Frankfurt.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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In a note to clients, the German broker said Merck is an innovative, agile company exposed to three long-term growth trends: novel drug manufacturing processes, drugs for the aging population and the digital data explosion.
On that basis, the science and technology group has created a stable, diversified business on track to deliver 5% per year top-line and 8% per year bottom-line growth over 2020-2025, it added.
"However, we conclude that the share price is up to speed with these attractive qualities, following 33% share price performance in 2020 despite EPS forecasts slightly declining," Berenberg pointed out.
Merck shares are currently down 0.2% in Frankfurt.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.