Guggenheim raises Merck stock price target to $170 on cancer drug

Guggenheim upgraded its price target for Merck & Co. (MRK) shares to $170 from $146, maintaining a Buy rating. The firm increased its sales estimates for intismeran autogene, the drug co-developed by Merck and Moderna Inc. (MRNA), following positive topline data from the two companies. Guggenheim's market model suggests around $7 billion in probability-adjusted sales potential by 2035, with profits split equally between the two companies.

The firm expects data from the INTerpath-001 trial at the European Society of Medical Oncology Meeting in October. Merck's stock surged 11.2% since the intismeran topline news, outperforming the S&P 500's 0.4% increase. Guggenheim also highlighted the potential for sacituzumab tirumotecan, estimating it could generate $7 billion in sales by 2035.

The firm anticipates Merck will face steep decline amid competition from intravenous biosimilars of Keytruda as it navigates through this period.