Cantor Fitzgerald maintains neutral on Amgen stock, target at $305

Published 02/05/2025, 16:08
Cantor Fitzgerald maintains neutral on Amgen stock, target at $305

On Friday, Cantor Fitzgerald analyst Carter Gould maintained a Neutral rating on Amgen stock with a price target of $305.00. The biotechnology giant, with a market capitalization of over $150 billion, has demonstrated strong financial health according to InvestingPro metrics, maintaining a 14-year streak of dividend increases and currently offering a 3.35% yield. Gould’s assessment followed Amgen’s first-quarter financial results, which surpassed consensus estimates for both revenue and earnings per share. The company reported an unexpected increase in revenue by $124 million and earnings by 64 cents per share compared to Visible Alpha consensus. This performance builds on Amgen’s impressive 18.6% revenue growth over the last twelve months, with total revenue reaching $33.4 billion.

The positive results were attributed to several one-time benefits and products that are currently facing competition from biosimilars. Specifically, the sales beat was driven by Otezla, Prolia/Xgeva, and Amgen’s own biosimilars Wezlana and Pavblu. Despite these gains, Amgen’s performance in its Rare Disease portfolio did not meet expectations, with notable sequential declines in sales of Tepezza by $68 million and Krystexxa by $56 million. The analyst pointed to stocking dynamics as the reason for the shortfall.

Gould emphasized that the second quarter would be particularly important for the Rare Disease segment, which is anticipated to be Amgen’s fastest-growing division in 2025, replicating its growth pattern from 2024. The upcoming quarter’s results are expected to be a significant indicator of performance for this key segment of the business.

In his commentary, Gould noted that the first-quarter report did not alter the fundamental thesis for Amgen or present any surprises. However, the performance of Pavblu was highlighted as notably impressive. Gould’s reiterated price target of $305.00 reflects his ongoing neutral stance on the biotechnology company’s stock.

In other recent news, Amgen Inc (NASDAQ:AMGN). reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $4.90, compared to the forecasted $4.29. The company also exceeded revenue projections, reporting $8.15 billion against an anticipated $8.09 billion, marking a 9% year-over-year increase. The biosimilars portfolio contributed significantly to this growth, with a 35% revenue increase to $700 million. Despite these strong financial results, Amgen’s stock experienced a decline. The company remains focused on expanding its international presence and advancing its late-stage pipeline, with expectations to increase non-GAAP R&D expenses by approximately 20% this year.

In the realm of analyst assessments, Amgen’s strategic plans and financial health were highlighted, with several analysts noting the company’s robust portfolio and promising pipeline. However, the competitive pressures in the biosimilars market and regulatory challenges in international expansion remain areas of concern. The company has also made significant investments in U.S. manufacturing facilities, with nearly $2 billion allocated to expansions in Ohio and North Carolina. Amgen continues to emphasize its commitment to innovation and long-term growth, with a revenue guidance for 2025 set between $34.3 billion and $35.7 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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