Merus (MRUS) Stock Forecast & Price Target

Merus NV's positive outlook is supported by Genmab's acquisition proposal, valuing the company at approximately $8 billion, which includes a 41% premium on the closing share price. The strategic alignment with Genmab enhances its late-stage pipeline, particularly with petosemtamab, expected to generate significant revenue, potentially reaching $1 billion by 2029, further emphasizing the growth prospects of both companies in the immuno-oncology sector. Additionally, the two ongoing trials for petosemtamab provide a promising path for generating long-term value, bolstered by its dual FDA Breakthrough Therapy Designations.

Merus NV has been downgraded to a neutral outlook primarily due to the proposed acquisition by Genmab, which values the company at approximately $8 billion and is expected to close in early 1Q26. This acquisition significantly alters Merus's previous valuation, resulting in a reduction of the price target to $97 per share from $135, as the likelihood of competing bids appears low. Furthermore, the financing structure of the acquisition, which involves a combination of cash and substantial non-convertible debt, introduces additional risks that could undermine Merus’s financial stability and growth prospects as it operates within the competitive field of immuno-oncology.