On Wednesday, Goldman Sachs reiterated its Buy rating on Amgen stock (NASDAQ:AMGN), maintaining a price target of $370.00. The biotechnology giant, with a market capitalization of $143.57 billion, has shown resilient performance with 21.25% revenue growth over the last twelve months.
According to InvestingPro data, analyst targets for the stock range from $195 to $405, reflecting diverse market opinions on this prominent industry player. The firm's analysts met with Amgen's management to discuss the company's late-stage pipeline and operational strategies.
The conversation highlighted Amgen's confidence in MariTide, an investigational treatment for obesity and type 2 diabetes. The drug is noted for its potential monthly or less frequent dosing schedule and for having mild and transient gastrointestinal side effects, primarily after the first dose.
Amgen is conducting a Phase 2 maintenance trial for MariTide, which will also assess quarterly dosing, with data expected in the second half of 2025. Detailed results are anticipated later this year, possibly at the American Diabetes Association meeting scheduled for June 20-23. These will offer more clarity on MariTide's clinical profile and the Phase 3 dose-escalation strategy, with the initial Phase 2 diabetes trial results also due in the latter half of the year.
In addition to MariTide, Amgen's management pointed to other significant assets in their pipeline. This includes olpasiran, targeting lipoprotein(a) with a Phase 3 trial expected to begin in the second half of 2025, and Uplizna for IgG4-related disease, with a PDUFA date set for April 3.
Other notable mentions were Tezspire for chronic obstructive pulmonary disease, with Phase 3 trials starting in the first half of 2025, and bemarituzumab for gastric cancer, with Phase 3 data expected in the same timeframe.
Goldman Sachs' analysts also noted Amgen's commitment to long-term growth and the development of high-quality assets, despite the potential impact on near-term operating margins. Amgen's focus on maintaining operational efficiency was also emphasized. InvestingPro analysis reveals the company maintains a GOOD financial health score, supported by strong profitability metrics and consistent dividend payments, having raised its dividend for 14 consecutive years.
According to Goldman Sachs, Amgen's stock is currently trading below its base business value of approved products plus net debt, which is approximately $280 per their discounted cash flow (DCF) analysis. The stock is also trading at around 12.8 times the consensus earnings per share (EPS) estimate for fiscal year 2025, which is close to a 10-year low.
Currently trading near its 52-week low of $253.30, InvestingPro's Fair Value analysis suggests the stock is slightly undervalued. This valuation comes ahead of the company's fiscal year 2025 guidance and anticipated catalysts for the same year. Investors seeking deeper insights can access comprehensive analysis and 8 additional ProTips through InvestingPro's detailed research report.
In other recent news, RBC Capital Markets, on the other hand, reduced its price target for the company but maintained an Outperform rating, citing potential growth from established products, recent acquisitions, and emerging treatments.
Piper Sandler also adjusted its outlook for Amgen, reducing the price target but maintaining an Overweight rating, highlighting the company's robust late-stage pipeline.
These recent developments show analysts' positive outlook on Amgen's future. Key points of interest include the potential of the obesity treatment MariTide, anticipated updates in 2025, and the company's ability to sustain growth through its established products and emerging pipeline. Analysts also noted the potential for Amgen's shares to appreciate due to its focus on obesity treatments, particularly with its MariTide product.
In addition to these ratings, Amgen has been making significant strides in its operations. The company recently announced a $1 billion investment in a second drug substance manufacturing facility in North Carolina, reflecting its commitment to environmental stewardship and manufacturing excellence. These advancements, along with the analysts' positive outlook, point to a promising future for Amgen.
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