Merck KGaA Process Solutions De-risked for 2026

Goldman Sachs maintains a BUY rating on Merck KGaA with a €147 price target, noting that while 1Q26 growth was boosted by temporary effects, the long-term story depends on R&D execution.

Key Takeaways

• 1.Merck KGaA's 1Q26 organic growth in Process Solutions reached 16%, significantly exceeding the mid-point of the 8-12% guidance range due to one-time stocking and warehouse impacts.
• 2.The company is increasing its focus on Healthcare R&D, targeting a spend of up to 25% of sales to support new Phase 3 assets like enpatoran and the CAECAM5 ADC.
• 3.A new strategy unveiled by the CEO emphasizes integrated solutions and early-to-mid stage M&A, though no further major strategy updates are expected until 2027.

Table of Contents

• Key takeaways from the earnings call
• Forecast changes
• GSe vs consensus
• Valuation and Risks
• Disclosure Appendix

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