Credit Suisse Sets Bearish Tone For Amgen; Says Current Setup Not Ideal For Growth

Credit Suisse has initiated coverage on Amgen Inc AMGN with an Underperform rating and a price target of $240.
The analysts say that Amgen has had a solid year, with the stock up c.25% year to date, recently driven by early clinical readouts.
Related: Amgen's Olpasiran Reduced Cholesterol Levels In 95% Of Patients In Mid-Stage Study.
But, the firm believes management's current setup for growth could be better. The company has guided for a 2022-2030 mid-single-digit revenue CAGR (CSe-1%). This is viewed as an aspirational goal, and do not see the new growth drivers (Lumakras, Tezspire) or the pipeline offsetting the eroding base business revenues.
Credit Suisse expects additional growth from M&A for Amgen to achieve its target, but meaningful deals could be challenging given the cash commitments for a >60% dividend payout ratio and continued share repurchases.
Price Action: AMGN shares are down 0.40% at $286.16 on the last check Friday.

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