Merck KGaA (NYSE:MRK) shares rose 1.7% to €141.30 after HSBC upgraded its rating on the Darmstadt-based science and technology group to “Buy” from “Hold”.
HSBC also named Merck KGaA among its preferred companies in the life sciences tools sector, alongside Lonza, Danaher and Agilent.
Analysts cited the company’s valuation, first-half 2026 growth and its performance relative to the recent broader sector rally among the reasons for the upgrade.
Second-quarter organic sales growth accelerates
Merck KGaA reported second-quarter 2026 results in early August, with organic sales growth increasing to 4.1% from 2.9% during the first quarter.
Within the business, Life Science Process Solutions recorded organic growth of 15%. The company also raised its full-year 2026 outlook when it reported the quarterly results.
The Life Science and Electronics divisions have contributed to the company’s recent growth, factors that HSBC considered as part of its assessment of the stock.
Shares advance as broader equity markets decline
Merck KGaA’s gain came during a session in which major U.S. equity indices moved lower. The S&P 500 declined 0.6%, while the Nasdaq fell more than 1.0%.
At €141.30, Merck KGaA shares remained below their 52-week high of €148.80.
HSBC’s upgrade followed the company’s improved organic sales growth in the second quarter and its increased full-year guidance, while the brokerage also highlighted the stock’s recent performance relative to other companies in the sector.