Daiwa Upgrade Boosts Merck Stock Despite Mixed Earnings

Merck stock has shown resilience in trading near $133 per share after Daiwa Securities Group upgraded its rating to outperform. The upgrade comes on the heels of mixed Q2 2026 earnings, which saw revenue growth but pressure on profit margins.

The upgrade set a price target of $143, implying a potential upside of around 9.7% from Merck's current share price. This is despite the stock trading slightly below its consensus fair value, according to aggregated analyst data.

Merck's Q2 2026 revenue reached $16.61 billion, ahead of analyst estimates and representing a 5.1% year-over-year growth. However, adjusted EPS for the quarter came in at -$0.13, beating expectations but still negative due to significant charges.