Börse Express – MERCK IN FOCUS: Exchange hype despite uncertainty


The pharmaceutical and chemical company Merck
the stock exchange is currently giving plenty of credit. The crisis in
Business with special materials is not yet complete
outstanding, but the stock made one last Friday
new record. What is going on at the company, what the analysts say
and what the stock does.


CEO Stefan Oschmann has been running the company since taking office in 2016
Conversion towards a strong on science and technology
specialized group. However, it makes cheap competition
from Asia Merck living in important business with
Heavy liquid crystals, such as those found in screens and smartphones
be used. With the billion dollar takeover of
The Darmstadt-based Dax group is trying to supply US semiconductor supplier Versum
to get the curve now.

After a short takeover battle, the American heard
Company since autumn 2019 to the traditional South Hessian group.
Merck wants to use Versum and also with the help of the newcomer
Intermolecular, a materials specialist from California, in one
play new league. The group wants to focus on that
Align semiconductor business and as a supplier for
Electrical industry occur – a market that the Darmstadt residents call
look particularly promising and lucrative.

For the latest quarterly balance sheet, the board had to
Specialty chemicals business, however, still saw a decline in sales of almost seven
Allow percent. Here the continuing decline in the
Liquid crystals noticeable. The group now wants its 2020
Finally leave the dry spell in the area. Last gave
There are also rumors that Merck is selling its pigment business
could, in which the group about color additives for the car and
Cosmetics industry.

Merck is also facing an exciting year in the pharmaceuticals business. So
is the evaluation of an important lung cancer study with the
Drug Bavencio. Merck stumbled into it
Field of growth of immuno-oncology, but has so far only
Approvals for indications with lower sales potential. moreover
the drug flopped in important ovarian and
Stomach cancer.

Basically, the pharmaceutical business was last after a dent
up again, thanks in part to the still relatively young product
Mavenclad for psoriasis. A reliable constant remains
also the laboratory business. In the through the acquisition of Sigma
Business strengthened in Aldrich’s strengthened division in 2015.

So far, Merck has lived up to its plan. After one
Transitional year 2018, CEO Oschmann had growth ”
all important key figures ”
operating profit and revenue strong in the first nine months
dressed. The board then raised its annual forecast. you
So it will be interesting to see how the figures for the final quarter
read. The group will present these on March 5.


With a view to the further development at Merck, there are not a few
Analysts are quite skeptical. This is how Krishna Chaitanya Arikatla thinks of
the US investment bank Goldman Sachs market expectations above all
for the MS agent Mavenclad for too high. In addition, the
Expert in the not insignificant China business of the pharmaceutical division
Worried because of the competitive and price pressures emerging

Barclays Bank analyst Emily Field is also
not very confident. In your opinion, the last one should be
strong profit momentum in the operative business of the group 2020
do not repeat. The expert therefore looks for the share in
in the first quarter of this year even greater setback potential and
therefore advises investors to “underweight” the papers.

Analyst Wimal Kapadia from the Bernstein analysis firm sees it differently. Out
In his view, the Darmstadt group is facing a good first

Overall, the ranks of the 16 recorded in the dpa-AFX analyzer
Pharmaceutical experts tend to be reluctant to look at the Merck share
set. The clear majority has a neutral vote, and two
Experts even vote for the sale. In contrast, there are only three
Analysts think the paper is still worth buying. With
The experts’ current target price is on average around 105 euros
but significantly below the current rate of 120 euros.


With its soaring, the Merck share is currently running European
Pharmaceutical sector in advance. The Stoxx Europe 600 Healthcare
has gained a good four percent since the beginning of the year, while the
Merck paper is growing by almost 14 percent. Indeed
the share also has some catching up to do. Because throughout the past
In 2019, the pharmaceutical industry in Europe rose on the stock exchange
of around a third. Merck paper, however, only managed one plus
of 17 percent.

The stock also came from a deep valley: concern for that
Liquid crystal business remained on course until the end of March 2018
Fall 74.54 euros to the lowest level in around two years
to let. Previously, investors had been hoping for new successful ones
Medicines from the group share up to that time
Intermediate high driven by a good 115 euros.

Meanwhile, Merck is also swimming in anticipation of a recovery
the specialty chemicals on the stock exchange again at the top. The other
Price performance should also depend on how it is actually in
the area continues./tav/stw/mne/jha/

 ISIN  DE0006599905

AXC0063 2020-01-27 / 08: 35

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