Merus Stock Soars To All-Time High As Genmab Announces $8B Takeover - Analysts Turn Cautious, Retail Crowd Cheers The Deal

Merus NV's stock climbed to a record high on Monday after Genmab said it would acquire the company in an $8 billion all-cash transaction, despite a broad wave of analyst downgrades.

Shares of Merus jumped 36% to close at $93.70 on Monday, before edging up 0.1%, in after-hours trading.

Needham analyst Ami Fadia downgraded Merus to 'Hold' from 'Buy' without a price target after the company entered into the agreement. Citi downgraded the stock to 'Neutral' from 'Buy' and cut its price target to $97 from $101, saying the possibility of a competing bid is very low.

Wells Fargo analyst Eva Fortea Verdejo lowered her rating to 'Equal Weight' from 'Overweight' and raised the price target to $97 from $95. Canaccord downgraded Merus to 'Hold' from 'Buy' with a price target of $97, while William Blair cut its rating to 'Market Perform' from 'Outperform'.

Truist moved Merus to 'Hold' from 'Buy' and raised the price target to $97 from $88, saying the deal terms are“favorable, all things considered.”

LifeSci Capital analyst Charles Zhu downgraded Merus to 'Market Perform' from 'Outperform' with a price target of $97. Guggenheim analyst Michael Schmidt downgraded the stock to 'Neutral' from 'Buy' and cut the target to $97 from $109.

H.C. Wainwright downgraded Merus to 'Neutral' from 'Buy' and reduced its price target to $97 from $135, saying Merus' full value is priced into the deal.

The transaction, unanimously approved by both companies' boards, gives Genmab full ownership of petosemtamab, Merus' late-stage antibody therapy for head and neck cancer, which has received two Breakthrough Therapy Designations from the U.S. Food and Drug Administration.

On Stocktwits, retail sentiment for Merus was 'extremely bullish' amid a 3,800% surge in 24-hour message volume.

Some users congratulated Merus shareholders on the buyout, saying the acquisition marked a rewarding moment for long-term investors who held through difficult periods.

Another user noted that the deal underscored the potential for other biotech firms to be acquired at higher valuations, citing that Merus was acquired by Genmab for $8 billion, despite its focus on the relatively smaller head and neck cancer market.

Merus' stock has more than doubled so far in 2025.

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