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Wells Fargo raised its Merck price target to $150, betting that sac-TMT’s potential to displace chemotherapy across multiple cancer indications, combined with KEYTRUDA’s continued growth and a deepening pipeline of 80 Phase 3 studies, will drive a pipeline-driven rerating through 2026.
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Merck & Co., Inc. (NYSE:MRK) has been on a strong recovery run, gaining 23% over the past year and 8% year-to-date, though the stock has pulled back some, now well below its 52-week high of $125.14. Most analysts hold measured views, with Street consensus sitting at $127.22. But Wells Fargo sees considerably more upside, raising its price target to $150 from $135 with an Overweight rating, implying meaningful upside from current levels. That target stands well above the Street average. But can MRK realistically reach $150 by the end of 2026?
Wells Fargo’s bull case centers on sacituzumab tirumotecan, or sac-TMT, Merck’s investigational anti-TROP2 antibody-drug conjugate. The firm believes sac-TMT could become the best-in-class TROP2 ADC and replace chemotherapy across multiple lung, breast, and gynecologic cancer indications. That thesis gets tangible support from the FDA, which awarded sac-TMT a Commissioner’s National Priority Voucher, and from a strategic financing agreement with Blackstone Life Sciences to partially fund sac-TMT development.
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Sac-TMT pipeline value: Sac-TMT’s potential to displace chemo in lung, breast, and gynecologic cancers represents a multi-indication commercial opportunity that could meaningfully expand Merck’s oncology franchise well into the next decade, representing a multi-indication commercial opportunity that could meaningfully expand Merck’s oncology franchise well into the next decade.
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KEYTRUDA’s continued expansion: The flagship immunotherapy posted $8.337 billion in Q4 2025 revenue, up 6% year-over-year, with the FDA also accepting two sBLAs for KEYTRUDA plus Trodelvy in first-line PD-L1+ metastatic triple-negative breast cancer. Expanding indications extend KEYTRUDA’s revenue runway despite the 2028 patent cliff.
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Emerging growth portfolio: WINREVAIR, Merck’s pulmonary arterial hypertension treatment, delivered $467 million in Q4 2025, up 133% year-over-year, while a commitment of more than $70 billion in U.S. capital and R&D spending signals management’s conviction in long-term compounding power for shareholders.
