Nico Chen, an analyst from DBS, maintained the Buy rating on Amgen (AMGN – Research Report). The associated price target is $365.00.
Nico Chen has given his Buy rating due to a combination of factors that highlight Amgen’s strong market position and growth potential. Amgen has demonstrated impressive financial performance in FY24, with a notable 19% increase in revenue, driven by a diverse range of products, many of which have achieved double-digit sales growth. The company’s strategic focus on expanding its biosimilar business is a key factor in mitigating risks associated with patent expirations, providing a stable revenue stream and capturing significant market share.
Additionally, Amgen’s commitment to research and development, evidenced by a 25% increase in R&D expenditures, is expected to fuel future growth through its robust pipeline of potential best-in-class and first-in-class drugs. With several promising clinical data readouts anticipated in the near term, Amgen is well-positioned to enhance its market value. The target price of USD 365 reflects these positive prospects, supported by a valuation that is 20% above the company’s five-year average PE ratio.
In another report released on March 25, Piper Sandler also reiterated a Buy rating on the stock with a $329.00 price target.
Based on the recent corporate insider activity of 99 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMGN in relation to earlier this year.