Cardiff Oncology shares plunge after Q2 earnings miss
On Friday, Piper Sandler adjusted its price target on Amgen stock (NASDAQ:AMGN), bringing it down to $328 from the previous target of $329, while keeping an Overweight rating on the shares. The adjustment followed the release of April 2025 prescription data and an updated financial model reflecting higher research and development (R&D) spending projections by the company.
The analyst from Piper Sandler, David Amsellem, noted that the monthly prescription data from IQVIA for April 2025 showed trends for several of Amgen’s key products. The updated model, which takes into account the first quarter results, now includes expectations for about a 20% increase in R&D spending for the year 2025, a rise from the previously anticipated mid-teens growth rate.
Despite the minor adjustment in the price target, the firm’s outlook on Amgen remains positive. The analyst emphasized that the strong volume growth trajectory for Amgen’s products Repatha and Tezspire is a critical factor in maintaining a constructive view on the company’s stock. According to Amsellem, the robust performance of Amgen’s commercial portfolio is expected to help the company overcome challenges related to the loss of exclusivity on some of its products. InvestingPro analysis reveals that Amgen has maintained dividend payments for 15 consecutive years, with a current yield of 3.5%, demonstrating strong financial stability. Get access to the comprehensive Pro Research Report and 12 additional ProTips for deeper insights into Amgen’s financial health and growth prospects.
The report also includes detailed monthly data on Amgen’s key products, which can be found in the exhibits referenced by the analyst. This data supports Piper Sandler’s continued confidence in the pharmaceutical company’s stock.
In conclusion, while the price target has been marginally reduced due to increased estimates for R&D spending, Piper Sandler reaffirms its Overweight rating on Amgen stock, signaling a positive outlook for the company’s financial performance and stock valuation.
In other recent news, Amgen Inc . reported a strong performance for the first quarter of 2025, with earnings per share (EPS) of $4.90, exceeding the forecast of $4.29. The company also surpassed revenue expectations, reporting $8.15 billion against a forecast of $8.09 billion, marking a 9% year-over-year increase. Despite these positive results, Erste Group downgraded Amgen’s stock from Buy to Hold, citing a potential slowdown in revenue and profit growth for the years 2025 and 2026. Cantor Fitzgerald maintained a Neutral rating on Amgen, noting that the first-quarter results did not alter their fundamental view of the company. S&P Global Ratings revised Amgen’s outlook from negative to stable, highlighting the company’s successful debt reduction efforts following its acquisition of Horizon in 2023. Amgen continues to see growth in its product lineup, with drugs like Repatha and Tezspire showing rapid growth. The company is also involved in a transfer pricing dispute with the IRS, which has not yet impacted its adjusted debt calculations.
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