Bank of America Securities analyst Tim Anderson maintained a Sell rating on Amgen (AMGN – Research Report) yesterday and set a price target of $252.00.
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Tim Anderson has given his Sell rating due to a combination of factors surrounding Amgen’s recent developments and market positioning. The primary concern stems from the recent decline in Amgen’s stock following the release of phase 1 and phase 2 trial results for MariTide, their obesity treatment. The trials revealed gastrointestinal tolerability issues, which have raised questions about the drug’s clinical profile and its potential success in the competitive market.
Additionally, there are uncertainties regarding the dosing schedule and the lack of prior studies on the 210mg dose, which Amgen plans to use in phase 3 trials. This reliance on pharmacokinetic modeling without concrete data adds to the skepticism. Furthermore, Amgen’s stock is trading at a slightly above-average price-to-earnings ratio, while its long-term growth prospects are only average. These factors contribute to doubts about whether Amgen will achieve a satisfactory return on investment, particularly given the competitive landscape and the potential challenges in executing cardiovascular outcomes trials.
AMGN’s price has also changed slightly for the past six months – from $264.000 to $272.440, which is a 3.20% increase.