Wells Fargo Adds Merck (MRK) to Q1 2026 Tactical List Ahead of Key Catalysts

Group 1 - Merck & Co., Inc. is recognized as one of the 12 Best DOW Stocks to Buy in 2026, indicating strong market confidence in the company's future performance [1] - Wells Fargo has added Merck to its Q1 2026 Tactical Ideas List, anticipating a catalyst-rich period for the company in FY26 and 2027, with a price target of $125 and an Overweight rating [2] - The stock rose nearly 8% in 2025, but faces risks due to the impending loss of US patent protection for its flagship cancer drug, Keytruda, in 2028, although international patents extend into the early 2030s [3] Group 2 - Merck is actively pursuing acquisitions, recently agreeing to acquire Cidara Therapeutics for approximately $9 billion, which will enhance its pipeline with a late-stage flu treatment [4] - The company has a strong history of navigating patent cycles successfully, and its dividend, with a payout ratio near 45%, is well-supported and expected to remain reliable [4] - Merck is a global healthcare company focused on prescription medicines, including biologics, vaccines, and animal health products, although some analysts suggest that certain AI stocks may offer greater upside potential [5]