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On Wednesday, Cantor Fitzgerald adjusted its outlook on Amgen shares (NASDAQ:AMGN), reducing the price target from the previous $405.00 to $340.00. Despite the lowered price target, the firm maintained its Overweight rating on the biotechnology company’s stock, which currently commands a market capitalization of $164.31 billion. According to InvestingPro data, Amgen maintains a "GOOD" financial health score, though the stock is currently trading at elevated earnings multiples.
The revision follows a recent clinical hold placed on Amgen’s AMG 513, a matter that has drawn industry attention due to the lack of details regarding the cause of the hold. Analysts have noted the scarcity of information surrounding the program and the reasons behind the regulatory action. With analyst price targets ranging from $195 to $389, market sentiment remains mixed. InvestingPro subscribers can access detailed analysis and 10+ additional expert insights about Amgen’s market position.
In a statement, Cantor Fitzgerald analyst Olivia Brayer expressed that the clinical hold on AMG 513 has diverted focus from what was otherwise a strong quarter for Amgen, evidenced by impressive revenue growth of 21.25% over the last twelve months. The firm emphasized that the future of the program remains uncertain at this time, with hopes of an update in the forthcoming months.
The price target adjustment to $340.00 reflects Cantor Fitzgerald’s revised expectations for Amgen’s MariTide, which is being developed for the treatment of obesity. The firm has set more conservative estimates for the drug’s market opportunity, influencing the decision to reduce the price target.
Amgen has conveyed confidence in the continuation of the AMG 513 program, although specifics about the mechanism of action (MOA) or the reasons for the clinical hold have not been disclosed. The biotech company and the broader market are anticipating further information that could shed light on the program’s future prospects.
In other recent news, Amgen has been making significant strides in its industry. Piper Sandler maintains a confident Overweight rating for Amgen, setting a price target of $310. This confidence is based on Amgen’s strategic direction, including their plans for capital management, expansion strategies, and the development of MariTide, a promising drug candidate.
In another development, the FDA has approved Amgen’s LUMAKRAS in combination with Vectibix for treating adult patients with KRAS G12C-mutated metastatic colorectal cancer. The 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.
Goldman Sachs has reiterated its Buy rating on Amgen, maintaining a price target of $370. The firm’s analysts highlighted Amgen’s confidence in MariTide and the company’s commitment to long-term growth and development of high-quality assets.
RBC Capital Markets, however, adjusted its price target on Amgen shares to $324 from the previous $330, while still maintaining an Outperform rating on the stock. The adjustment is based on the firm’s analysis of Amgen’s growth prospects, supported by its established product line, recent acquisitions, and an emerging pipeline of treatments.
These recent developments highlight Amgen’s ongoing commitment to innovation and growth in the pharmaceutical industry.
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