In a report released yesterday, Geoff Meacham from Citi maintained a Hold rating on Amgen (AMGN – Research Report), with a price target of $300.00.
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Geoff Meacham has given his Hold rating due to a combination of factors impacting Amgen’s stock. The presentation of MariTide at the ADA conference revealed concerning discontinuation rates and gastrointestinal-related adverse events, such as nausea and vomiting, which were notably higher than expected. These safety and tolerability issues have been a significant concern for investors, particularly after the phase 2 data release, and are likely to exert downward pressure on Amgen’s stock.
Despite the potential for improved tolerability with longer dose titration in phase 3, the high rates of gastrointestinal adverse events raise questions about the necessity of a monthly injectable, especially during the initiation phase. The tolerability profile of MariTide remains a challenge, leading to cautious expectations for a significant improvement in Amgen’s topline performance. Consequently, the recommendation to maintain a Neutral stance with a target price of $300 reflects these tempered expectations.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $280.00 price target.
AMGN’s price has also changed slightly for the past six months – from $264.000 to $272.440, which is a 3.20% increase.