HSBC Lifts Merck KGaA to Buy, Citing Attractive Valuation

Merck KGaA's stock price surged 1.7% on September 1, reaching €141.30, after HSBC upgraded its rating to Buy from Hold and named it one of its preferred picks in life sciences tools.

The upgrade was based on three key factors: attractive valuation, strong first-half 2026 growth, and the stock's failure to participate in the recent sector-wide rally.

Merck KGaA's second-quarter 2026 results showed organic sales growth accelerating to 4.1% from 2.9% in the first quarter, with Life Science Process Solutions expanding 15% organically.

The HSBC upgrade stands out given the broader market environment, as major U.S. indices were down on September 1, with the S&P 500 off 0.6% and the Nasdaq sliding more than 1.0%.