Assessing Amgen: Insights From 9 Financial Analysts

Ratings for Amgen AMGN were provided by 9 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $295.67, a high estimate of $329.00, and a low estimate of $256.00. Observing a downward trend, the current average is 4.89% lower than the prior average price target of $310.88.

Investigating Analyst Ratings: An Elaborate Study

The standing of Amgen among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Amgen. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Amgen compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Amgen's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Amgen's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Amgen analyst ratings.

Delving into Amgen's Background

Amgen is a leader in biotechnology-based human therapeutics. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drugs Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx Pharmaceuticals bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). The 2023 Horizon acquisition brought several rare-disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.

Understanding the Numbers: Amgen's Finances

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Amgen displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 10.86%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Amgen's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 6.9%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Amgen's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 9.36%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.69%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Amgen's debt-to-equity ratio is notably higher than the industry average. With a ratio of 10.23, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.