Analyst Terence Flynn from Morgan Stanley maintained a Hold rating on Amgen (AMGN – Research Report) and keeping the price target at $328.00.
Terence Flynn has given his Hold rating due to a combination of factors surrounding Amgen’s Rocatinlimab (Roca) and its position in the treatment landscape for atopic dermatitis. The data from the Phase 3 HORIZON trial presented at the AAD conference showed that while Roca demonstrated some efficacy, it is likely to be positioned as a second-line therapy following Dupixent, which has shown stronger results in similar trials. Additionally, the safety profile of Roca, although comparable to placebo in terms of overall adverse events, showed higher incidences of specific side effects such as pyrexia and headaches, which may affect its competitive standing.
Furthermore, the projected sales for Rocatinlimab by 2030 are relatively modest, representing only a small fraction of Amgen’s total revenue. This, combined with the fact that the efficacy data within patient subgroups were not fully reported, contributes to the uncertainty about its market potential. These factors, along with the competitive landscape and safety concerns, underpin Flynn’s decision to maintain a Hold rating on Amgen’s stock.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $280.00 price target.
Based on the recent corporate insider activity of 99 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMGN in relation to earlier this year.