Amgen stock price target cut, holds outperform on prospects

EditorNatashya Angelica
Published 2025-01-07, 09:24 a/m
AMGN
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On Tuesday, RBC (TSX:RY) Capital Markets adjusted its price target on Amgen (NASDAQ:AMGN) shares, reducing it to $324 from the previous $330, while maintaining an Outperform rating on the stock. The adjustment comes amid RBC Capital's analysis of the company's growth prospects, supported by its established product line, recent acquisitions, and an emerging pipeline of treatments.

The firm's analyst highlighted Amgen's ability to sustain growth in future years, bolstered by its established products, assets acquired from Horizon Therapeutics (NASDAQ:HZNP) (referred to as HZNP assets), and the development of new drugs.

The analyst noted that Amgen stands out as a high-quality biotech firm, not only in relative terms but also considering its dividend yield, consistent cash flow, and a strong track record. The company's strategy is likened to a "four-legged stool," with a focus on general medicines, oncology, immunology and inflammation, and rare diseases.

Amgen's current portfolio is seen to be in a stronger position, with the potential for long-term growth in its commercial franchises like Repatha, biosimilars, and Tezspire, as they gain market share. Moreover, the recent incorporation of Tepezza, Krystexxa, and Uplizna is anticipated to significantly contribute to revenue in the upcoming years.

RBC Capital outlined several key positive aspects of Amgen's trajectory: the company's ongoing success in expanding its base business, the high-quality assets emerging from its pipeline, a robust cash position to fund future growth, and the expectation that its 2030 growth targets will be met through its current product range, pipeline, and strategic cash utilization.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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