In a report released today, Tim Anderson from Bank of America Securities reiterated a Sell rating on Amgen (AMGN – Research Report), with a price target of $275.00.
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Tim Anderson’s rating is based on a combination of factors that suggest a cautious outlook for Amgen’s stock. The company’s Q4 results showed a slight decline in total revenue compared to consensus expectations, although earnings per share exceeded estimates. Amgen’s guidance for 2025 indicates modest growth in revenues and earnings per share, but there are concerns over increasing research and development spending, particularly due to potential competition from biosimilars for one of its major products.
Additionally, Amgen’s valuation appears stretched, with its price-to-earnings ratio slightly higher than average, while its long-term growth profile seems average or below average. Despite a small upward revision in price objectives, the company’s growth prospects are tempered by expected operating margin erosion and increased expenses in developing new treatments. These factors combine to warrant a Sell rating from Tim Anderson.
According to TipRanks, Anderson is a 4-star analyst with an average return of 8.9% and a 68.42% success rate. Anderson covers the Healthcare sector, focusing on stocks such as Johnson & Johnson, Pfizer, and Amgen.