On Thursday, Amgen Inc . (NASDAQ:AMGN) received a price target increase from Argus, with the new target set at $340, up from the previous $300, while the firm maintained a Buy rating on the stock. The upgrade reflects confidence in the biotechnology company's robust pipeline and growing portfolio of products.
Amgen has reported a 25% volume growth in its existing products during the first quarter. The company's recent achievements include the FDA approval of Blincyto for a specific type of acute lymphoblastic leukemia and the approval of Imdelltra for extensive-stage small cell lung cancer treatment.
Additionally, Amgen is expanding its global presence with the submission of teprotumumab for regulatory review in the EU, Great Britain, Canada, Australia, and Japan. Teprotumumab is a monoclonal antibody aimed at treating moderate to severe Thyroid Eye Disease (TED) in adults.
The company's revenue is 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 substantial cash flow to invest in research and development (R&D) and strategic acquisitions.
The revised price target from Argus suggests an anticipated total return, including dividend, of approximately 11% for Amgen's shares. This outlook is based on the company's strong product pipeline and its recent regulatory successes.
In other recent news, Amgen Inc. has been the subject of several significant developments. RBC Capital Markets has increased its price target for Amgen shares, maintaining an Outperform rating, due to optimism surrounding the firm's obesity treatment program, MariTide, and its broader cardiometabolic portfolio. Additionally, Amgen announced an 87% reduction in flares for patients with Immunoglobulin G4-related disease (IgG4-RD) in a Phase 3 clinical trial for UPLIZNA, indicating plans to seek regulatory approval for UPLIZNA as a treatment for IgG4-RD in the U.S. and other key markets.
ARK ETFs, managed by Cathie Wood, acquired 13,622 shares of Amgen, signaling a positive outlook on the company's growth prospects. In the weight-loss drug market, Amgen is expecting results from mid-stage trials of its drug Maritide later this year, a significant factor considering the global sales forecast for weight-loss drugs is predicted to reach approximately $150 billion by the early 2030s.
Wells Fargo reaffirmed its Overweight rating on Amgen, focusing on the ongoing developments 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 Amgen Inc.'s (NASDAQ:AMGN) recent price target increase by Argus, a closer look at the company's financial health and market performance using InvestingPro data reveals additional insights. Amgen boasts a substantial market capitalization of $167.91 billion, reflecting its significant presence in the biotechnology industry. With a robust revenue growth of 12.76% in the last twelve months as of Q1 2024, the company demonstrates its capability to expand its financial base amidst a challenging market environment. Furthermore, Amgen's dedication to shareholder returns is evident with a solid dividend yield of 2.88%, coupled with a history of raising its dividend for 14 consecutive years, as noted in one of the InvestingPro Tips.
Investors may also note Amgen's trading at a high earnings multiple with a P/E ratio of 37.97, suggesting a premium market valuation that could be justified by its leading position in the biotechnology sector and consistent profitability, with analysts predicting profitability for this year. Additionally, the stock's low price volatility, as per another InvestingPro Tip, can be appealing for investors seeking stability in their portfolio. For those interested in further analysis and additional InvestingPro Tips for Amgen, including the company's trading near its 52-week high and its high Price / Book multiple, there are 7 more tips available at InvestingPro. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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