On Friday, Piper Sandler reiterated its Overweight rating on Amgen (NASDAQ:AMGN) shares, maintaining a price target of $310.00. The company, which boasts a "GOOD" overall financial health score according to InvestingPro analysis, has demonstrated strong dividend performance with 14 consecutive years of increases and a current yield of 3.5%.
The firm's analysts recently engaged with Amgen's senior leadership and attended the company's analyst event to discuss several strategic areas, including capital management, expansion strategies, and the development of the company's drug candidate, MariTide.
The discussions with Amgen's team delved into how the company plans to balance its capital structure while remaining open to merger and acquisition opportunities. Additionally, the growth of Amgen's biosimilars portfolio was a focal point, with expectations set for the Phase III initiation of MariTide within the first half of 2025. The company's strong position is reflected in its impressive 21.2% revenue growth and $12.25 billion in EBITDA over the last twelve months.
Piper Sandler expressed confidence in Amgen's ability to maintain stability in its revenue and EBITDA at least until the end of the decade. The analysts anticipate that Amgen's growth could become more pronounced following the introduction of MariTide to the market. They believe this could pave the way for potential multiple expansion for the company's stock. According to InvestingPro analysis, Amgen is currently trading near its Fair Value, with additional insights and detailed valuations available in the comprehensive Pro Research Report.
The firm's stance on Amgen's stock is buoyed by the anticipated availability of MariTide and the company's overall strategic direction. Piper Sandler's previous report dated January 1, 2025, provides additional details on their outlook and the factors underpinning their continued positive rating and price target for Amgen shares.
In other recent news, Amgen, a leading biotech firm, has garnered FDA approval for LUMAKRAS® in combination with Vectibix® to treat adult patients with KRAS G12C-mutated metastatic colorectal cancer. This approval is based on the Phase 3 CodeBreaK 300 study, demonstrating the regimen's effectiveness in enhancing progression-free survival. Additionally, Amgen has reported robust revenue growth of 21.25% in the last twelve months.
Analysts from Goldman Sachs and RBC Capital Markets have reiterated their positive ratings on Amgen's stock, emphasizing the company's potential for sustained growth through its established products and emerging pipeline. Specifically, Goldman Sachs maintains a Buy rating, while RBC Capital Markets holds an Outperform rating. Piper Sandler also maintains an Overweight rating on Amgen, despite adjusting its price target.
In other developments, Amgen has 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 recent developments underscore the analysts' positive outlook on Amgen's future.
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