Scotiabank Rates Merck (MRK) buy, $155 Price Target

An analyst update highlights a significant gap between the pharmaceutical firm's trading price and its projected valuation, a 20.62% upside from the current price.

By EarningsIQ Research Desk · Published Jun 30, 2026, 11:02 AM EDT · Updated Jul 1, 2026, 3:01 PM EDT

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Scotiabank rated Merck & Co., Inc. ($MRK) "buy" with a $155 price target on June 30, 2026.

Since the rating, $MRK is up 0.3% after 1 week, up 1.0% after 1 month and up 14.2% to date (from the $127.75 close on Jun 30, 2026).

MRK Merck & Co., Inc.

$145.95 +39.93% year to date

Daily close · Oct 16, 2026

Key Points

Scotiabank analyst Louise Chen reiterated a buy rating on Merck & Co., Inc. on June 30, 2026, setting a price target of $155.00.
Scotiabank's $155 price target implies 20.62% upside from Merck & Co., Inc.'s ($MRK) current $128.50 share price.
Merck shares traded at $128.50 on Tuesday, representing a substantial discount to the firm's price target.
Three company insiders purchased a combined total of 424 shares on the same day the analyst report was published.

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Scotiabank analyst Louise Chen updated her outlook on Merck & Co., Inc. (NYSE:MRK) on June 30, 2026, reiterating a buy rating. The investment bank set its price target for the drugmaker at $155.00. This assessment points to a belief that the company still has plenty of headroom from its current market valuation.

The Valuation Gap for Merck Shares

With Merck trading at $128.50 on Tuesday, the $155.00 price target implies that Scotiabank sees a clear path upward for the healthcare giant. This price target represents a gap of $26.50 above the Tuesday spot price. Investors often monitor these targets to gauge how much room a large-cap stock has to run before hitting what Wall Street considers fair value.

12-month forecast

$MRK price target

Merck & Co., Inc. daily closes and this analyst's $155 target. Not advice.

Merck Stock Performance and Technical Levels

Over the past year, Merck shares have traded within a wide range. The stock reached a high of $156.92 and fell to a low of $77.58. Looking at moving averages, which help smooth out short-term price fluctuations, the 50-day moving average stands at $138.39. The longer-term 200-day moving average sits at $120.70, indicating the stock maintains support above its longer-term trendline.

Wall Street Adjustments to Merck Price Targets

Several other investment firms have adjusted their expectations for Merck. On October 12, 2026, Citigroup maintained a Neutral rating on the stock, though it raised its target to $145.00 from a previous $125.00. On that same day, RBC Capital kept its Sector Perform rating with a $145.00 target, down slightly from $150.00. Earlier in October, Cantor Fitzgerald maintained its Neutral rating with a $145.00 target, while Morgan Stanley kept its Overweight rating with a $177.00 target. JP Morgan also held an Overweight rating on October 5, 2026, with a $165.00 target. Overall, the consensus among 26 analyst opinions leans toward a buy, with an average target price of $152.96.

Recent Insider Purchases at Merck

On the same day Scotiabank issued its report, three corporate insiders acquired shares of the company. Karsanbhai Surendralal Lanca purchased 127 shares at a price of $128.50 each, bringing the total value of the trade to $16,319.50. Christine Seidman bought 63 shares at that same price of $128.50, representing a total transaction value of $8,095.50. Additionally, Mary Ellen Coe bought 234 shares at $128.50, a trade valued at $30,069.00. None of these transactions were executed under pre-arranged Rule 10b5-1 trading plans.

Strong Dividend Yield for Shareholders

Merck remains a consistent option for income-focused investors. The company pays an annual dividend rate of $3.40, which translates to a dividend yield of 2.31%. This yield is supported by a dividend payout ratio of 2.688, reflecting the portion of earnings returned to shareholders as dividends.

Financial Health and Earnings Profile

Merck reported annual revenue of $66,568,998,912, showing a steady revenue growth of 5.1%. The drugmaker operates with a net margin of 4.77% and a return on equity of 6.96%. Looking ahead, the company has its next earnings release scheduled for October 29, 2026. The stock currently has a price-to-earnings ratio of 119.6, while its forward P/E ratio stands at 15.653565, suggesting analysts expect stronger earnings in the coming quarters.

Global Healthcare and Pharmaceutical Leader

Merck & Co., Inc. is a global healthcare company that develops human pharmaceuticals and vaccines. Some of its most prominent brands include Keytruda for oncology and Gardasil for vaccine prevention. The company also operates a large veterinary medicine division, offering health management products for livestock and companion animals worldwide.

What to Watch at Merck & Co., Inc.

Investors should keep an eye on Merck's upcoming earnings report on October 29, 2026, to see if the company's financial results align with the optimistic targets set by Wall Street. Additionally, further regulatory approvals for its oncology pipeline and any subsequent SEC filings regarding institutional holdings will provide clearer signs of where the stock is headed. Analyst ratings and price targets are subject to change as market conditions shift.