FRANKFURT (dpa-AFX Broker) - Following their recent relief rally, Merck KGaA shares showed signs of weakness on Tuesday morning. On the Tradegate trading platform, the Darmstadt-based group's stock slipped 1.3 percent below its Xetra close to 128.30 euros. Since hitting a year-to-date low in mid-March, the shares had recently recovered by 29 percent.

Experts are now at odds regarding the stock's valuation. While analyst James Vane-Tempest of investment bank Jefferies initiated coverage with a 'Hold' rating and a price target of 129 euros, Richard Vosser of JPMorgan continues to view the stock as undervalued.

His price target stands at 150 euros. The JPMorgan expert believes the company can achieve average earnings growth of approximately 9 percent through 2030, placing it at the upper end of its European pharmaceutical peers. Meanwhile, Jefferies analyst Vane-Tempest sees further upside only if innovation delivers a significant breakthrough./ag/zb

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