Amgen, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Tim Anderson from Bank of America Securities reiterated a Sell rating on the stock and has a $272.00 price target.
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Tim Anderson’s rating is based on a combination of factors that suggest Amgen’s stock may be overvalued. Despite Amgen’s third-quarter results surpassing expectations in terms of revenue and earnings per share, the company’s future guidance presents mixed signals. While revenue projections for 2025 have been slightly increased, the anticipated growth in research and development expenses and a higher expected tax rate could offset these gains.
Another concern highlighted by Anderson is the delay in trial readouts for key pipeline assets, such as olpasiran, which may impact future growth prospects. Additionally, Amgen’s price-to-earnings ratio is slightly above average, which, coupled with a long-term growth profile that is only average, suggests that the stock is currently overvalued. Consequently, Anderson reiterates a price objective of $272, indicating a potential downside from the current trading price.
AMGN’s price has also changed moderately for the past six months – from $280.060 to $319.860, which is a 14.21% increase.