Citadel Advisors invested in Merck to drive growth

7月29日

Citadel Advisors, along with other institutional investors, has increased its stake in Merck & Co., indicating a solid market interest as the company's stock currently appears undervalued. During the second quarter of 2024, Citadel Advisors acquired 1.25 million shares of Merck & Co., contributing to a rise in the stock price as smaller investors followed suit, bolstering their investments in the pharmaceutical giant.

Merck & Co. continues to experience robust sales growth from its flagship cancer drug, Keytruda. However, investors must also weigh potential risks, notably the impending expiration of Keytruda's patent protection in the US by 2028. This event could lead to increased competition from biosimilar drugs, potentially impacting Merck's revenue streams. To mitigate this, Merck & Co. is urged to diversify and strengthen its pharmaceutical portfolio beyond immuno-oncology to drive sustainable growth.

Technical analysis of Merck & Co. Inc. (NYSE: MRK)

Evaluating the potential trading opportunities based on the current technical landscape of Merck & Co.'s stock:

Timeframe: Daily (D1)
Current Trend: the stock is currently in a global uptrend that began at the end of 2021
Resistance Level: 133.50 USD
Support Level: 121.00 USD
Potential Downtrend Target: if a downtrend develops, a potential downside target could be 99.50 USD
Short-Term: if the uptrend persists and the stock surpasses the resistance at 133.50 USD, a short-term target could be set at 140.00 USD
Medium-Term: with continued upward momentum, the stock price might target 150.00 USD

Investors should continue to monitor Merck & Co., especially given the significant institutional investment and the strategic challenges ahead. The company's ability to innovate and expand its product offerings will be crucial in maintaining its competitive edge in the pharmaceutical industry.

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