On Wednesday, RBC Capital Markets adjusted its price target for Amgen (NASDAQ:AMGN) shares, reducing it slightly from $324 to $320, while retaining an Outperform rating on the biotechnology firm’s stock. The revision follows Amgen’s recent financial report, which showcased earnings surpassing expectations for the fourth quarter of 2024. According to InvestingPro data, the stock is currently trading near its Fair Value, with six analysts recently revising their earnings expectations upward for the upcoming period. The company also provided guidance for the fiscal year 2025 that was largely in line with analyst predictions.
Amgen’s fourth-quarter performance demonstrated robust top-line and bottom-line results, with the stock showing a strong 10.89% return year-to-date. The forecast for the coming year suggests a period of steadier growth with fewer significant events anticipated in the company’s pipeline. Despite this outlook, RBC Capital’s analyst believes Amgen’s core business remains strong and is well-positioned to grow as its cardiometabolic franchise continues to solidify and expand its market presence. The company maintains a solid 3.29% dividend yield and has raised its dividend for 14 consecutive years, demonstrating consistent shareholder returns. For deeper insights into Amgen’s financial health and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which covers what really matters about this $162.82 billion market cap biotechnology leader.
The analyst noted that while Amgen may present a less divisive investment choice compared to its standing in 2024, investors should stay alert for shifts in market sentiment. This could be particularly relevant with upcoming details from the Phase III study of MariTide and data from Phase II trials in obesity and type 2 diabetes mellitus (T2DM), expected to be presented at the American Diabetes Association (ADA) meeting in June and in the second half of 2025. InvestingPro analysis indicates the company maintains a GOOD overall Financial Health Score of 2.81, suggesting strong fundamentals despite the RSI currently indicating overbought conditions.
The updated model from RBC Capital takes into account the end-of-year updates and the fiscal year 2025 guidance provided by Amgen. The slight reduction in the price target reflects these considerations while the firm’s positive outlook on Amgen’s stock remains unchanged.
In other recent news, Amgen has been the subject of various analyst updates. Cantor Fitzgerald has lowered its price target for Amgen to $340, maintaining an Overweight rating, due to a clinical hold on AMG 513 and revised expectations for Amgen’s MariTide. Piper Sandler, on the other hand, has reiterated its Overweight rating on Amgen with a price target of $310, expressing confidence in the company’s strategic direction and the upcoming availability of MariTide.
Goldman Sachs has also maintained its Buy rating on Amgen, with a price target of $370, citing the company’s commitment to long-term growth and operational efficiency. The firm also noted the current stock price presents an attractive buying opportunity.
In addition to these analyst updates, the FDA has approved Amgen’s LUMAKRAS in combination with Vectibix for the treatment of adult patients with KRAS G12C-mutated metastatic colorectal cancer. This approval is based on the Phase 3 CodeBreaK 300 study, which demonstrated the combination’s efficacy in doubling progression-free survival compared to standard-of-care treatments.
These are some of the recent developments that have been shaping the narrative around Amgen.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.