FRANKFURT (dpa-AFX) - Following a recommendation by Citigroup, Merck KGaA shares rose 1.3 percent to 162.50 euros on Thursday, heading for resistance around 165 euros. In June and around the turn of the month from August to September, the shares had briefly risen above this level, but had just as quickly fallen back below it. With the plus, Merck shares led the weak Dax.

Peter Verdult, an analyst at the U.S. bank Citigroup, continues to believe that the shares will make a big leap in the medium term. He raised his price target from EUR 200 to EUR 210 and upgraded the shares from "neutral" to "buy" after the poor price performance in recent months. The outlook for the healthcare business had improved, the expert wrote in a study.

In addition, investors could bet on a recovery in the semiconductor business. And the potential cancer drug Xevinapant, for which interim Phase III data were expected soon, could also hold plenty of potential.

Despite Thursday's gains, Merck KGaA's share price has lost about 10 percent this year. The paper is thus one of the weakest stocks in the Dax this year, which has gained around twelve percent since the end of 2022, almost making up for its losses last year. Last year, the share had already lost more than the leading German index, with a discount of 20 percent.

At the end of 2021, the share price reached 231.50 euros, the highest level in its history, and has since fallen by around 30 percent. It is currently worth the same as it was in mid-2021, but in the medium term it is one of the biggest winners on the German stock market, having almost tripled in value since September 2013. Over the past twenty years, the gains have added up to 1000 percent.

Merck is now one of the most valuable companies in Germany, with a stock market value of around 70 billion euros./mis/zb/mis