On Wednesday, RBC Capital maintained an Outperform rating on shares of Amgen (NASDAQ:AMGN) and increased the stock's price target to $362 from $332. The firm's optimism is fueled by the potential of Amgen's drug portfolio, particularly the promising interim data for MariTide and other key drugs in the pipeline.
The analyst highlighted the significance of MariTide and the obesity portfolio in shaping investor expectations, especially after the "encouraging" interim data amidst financial results that met expectations. The revised full-year 2024 guidance also contributed to the positive outlook.
Amgen's catalysts for the second half of 2024 are expected to be robust, with key events including MariTide's phase II top-line results expected in late 2024. Moreover, data readouts for rocatinlimab (treating atopic dermatitis), Uplizna (for generalized myasthenia gravis), and fipaxalparant (for idiopathic pulmonary fibrosis) are anticipated to be significant drivers for expanding the revenue base.
RBC Capital updated its model for Amgen following the quarterly earnings call and a subsequent discussion with the company. The increased levels of conviction led to a higher probability of success (PoS) being factored in for MariTide, and the inclusion of rocatinlimab into the pipeline valuation. This recalibration underpins the revised price target of $362.
The firm's maintained Outperform rating reflects confidence in Amgen's strategic positioning and the expected positive developments in its drug pipeline. The new stock price target represents a notable increase from the previous target, underscoring the firm's expectation of Amgen's growth trajectory.
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