Thursday Amgen Inc . (NASDAQ:) received a price target increase from Argus, which set the new target at $340, from $300, while the company maintained a Buy rating on the stock. The upgrade reflects confidence in the biotech company’s robust pipeline and growing product portfolio.
Amgen reported 25% growth in existing product volumes in the first quarter. The company’s recent successes include the FDA approval of Blincyto for a specific type of acute lymphoblastic leukemia and the approval of Imdelltra for the treatment of extensive-stage small cell lung cancer.
Additionally, Amgen is expanding its global presence with the submission of teprotumumab for regulatory review in the EU, UK, Canada, Australia and Japan. Teprotumumab is a monoclonal antibody intended for the treatment of moderate to severe thyroid ocular disease (TED) in adults.
The company’s revenues are expected to benefit from the introduction of new drugs, biosimilars, and products obtained through mergers and acquisitions (M&A) and in-licensing. Amgen is leveraging its strong cash flow to invest in research and development (R&D) and strategic acquisitions.
The price target revised by Argus suggests an expected total return, including the dividend, of around 11% for Amgen shares. This forecast is based on the company’s strong product pipeline and recent regulatory successes.
In other recent news, Amgen Inc. has been the subject of several significant developments. RBC Capital Markets raised its price target for Amgen shares, maintaining its Outperform rating, thanks to optimism surrounding the company’s obesity treatment program, MariTide, and its broader cardiometabolic portfolio. Additionally, Amgen announced an 87% reduction in inflammation in patients with immunoglobulin G4-related disease (IgG4-RD) in a Phase 3 clinical trial for UPLIZNA, indicating intent to seek regulatory approval for UPLIZNA as a treatment for IgG4-RD in the US and other key markets.
ARK ETFs, managed by Cathie Wood, bought 13,622 shares of Amgen, signaling a positive outlook on the company’s growth prospects. In the weight-loss drug market, Amgen expects mid-stage results for its drug Maritide by the end of the year, a significant factor considering that global weight-loss drug sales forecasts weight loss is expected to reach approximately $150 billion by the early 2030s.
Wells Fargo reiterated its Overweight rating on Amgen, focusing on the ongoing development of Amgen’s tezepelumab therapy. BMO Capital also maintained an Outperform rating and a $355.00 price target on Amgen shares following the release of updated Phase 2a COURSE data for the company’s tezepelumab.
InvestingPro Insights
In light of Argus’s recent price target increase on Amgen Inc. (NASDAQ:AMGN), a deeper dive into the company’s financial health and market performance using InvestingPro data reveals additional insights. Amgen boasts a sizeable market cap of $167.91 billion, reflecting its significant presence in the biotechnology industry. With robust revenue growth of 12.76% over the last twelve months as of Q1 2024, the company demonstrates its ability to expand its financial base in a challenging market environment. Additionally, Amgen’s dedication to shareholder returns is evident with a solid dividend yield of 2.88%, coupled with a history of increasing the dividend for 14 consecutive years, as highlighted in one of InvestingPro’s recommendations.
Investors may also note that Amgen is trading at a high earnings multiple with a P/E ratio of 37.97, suggesting a premium market valuation that may be justified by its leading position in the biotech industry and consistent profitability, with analysts forecasting profitability this year. Additionally, the stock’s low price volatility, as noted in another InvestingPro tip, may be attractive to investors looking for stability in their portfolio. For those interested in more InvestingPro analysis and tips on Amgen, including the fact that the company is near 52-week highs and its high price-to-book multiple, there are 7 more InvestingPro tips available. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% discount on an annual or two-year subscription to Pro and Pro+.
This article was generated and translated with the support of artificial intelligence and reviewed by an editor. For further information, please see our T&Cs.
