Merck Stock Retreats from All-Time High After Surge

Merck stock has backed off its all-time high of $154.49 after surging by 12% on August 19, following news that its intismeran melanoma vaccine had met Phase 3 clinical trial endpoints.

The vaccine, co-developed with Moderna (MRNA), beat Keytruda monotherapy alone in both primary and secondary trials, prompting a cascade of analyst upgrades. Morgan Stanley upgraded Merck to Overweight with a $179 target price, while BMO Capital Markets maintained its Buy rating with a revised target price of $170.

However, UBS downgraded the stock to Neutral from Buy, citing that the recent rally was 'broadly aligned with events'. The company's fair value model pegs the stock at $148.02, just 1% below its current trading price.