Analysts rate Amgen Inc. (AMGN:NSD) with a Buy rating and a $245 target

STA Research
by: STA Research
AMGN stock price

Based on the Amgen stock forecast from 9 analysts, the average analyst AMGN stock price target is USD 245.58 over the next 12 months. Amgen Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Amgen stock forecast is Slightly Bullish, which is based on 8 positive signals and 6 negative signals. At the last closing, Amgen stock price was USD 247.69Amgen stock price has changed by +5.32% over the past week, -0.66% over the past month and +15.88% over the last year.

About Amgen Inc. (AMGN:NSD):

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. It has an agreement with Kyowa Kirin Co., Ltd. to jointly develop and commercialize KHK4083, a Phase 3-ready anti-OX40 fully human monoclonal antibody for the treatment of atopic dermatitis and other autoimmune diseases; and research and development collaboration with Neumora Therapeutics, Inc. and Plexium, Inc. Amgen Inc. was incorporated in 1980 and is headquartered in Thousand Oaks, California.

 

Most Recent Analyst Ratings for AMGN’s stock price:

 

News:

In a clinical trial, the Lumakras medication from Amgen Inc. decreased the risk of disease progression in patients with advanced lung cancer by 34% when compared to chemotherapy, the company reported on Sunday.

As a requirement of Lumakras’ fast approval, U.S. regulators demanded a confirmatory trial, which found no discernible difference in overall survival between the two therapies. Amgen, however, said that the trial was not intended to find a difference in survival.

Amgen said last month that a small study of Lumakras paired with immunotherapy indicated high rates of liver toxicity and that further study was required. The company is also studying whether the medicine could be useful against lung cancer earlier in the disease.

At the annual meeting of the European Society for Medical Oncology (ESMO) in Paris on Monday, more comprehensive study findings including 345 patients, including the median progression-free survival – the amount of time before the cancer starts to worsen – will be unveiled.

 

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior return on equity:

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth:

Amgen stock price has shown top quartile dividend growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio:

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Below median total returns:

Amgen stock price has under-performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings:

AMGN stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

AMGN stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

AMGN stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

AMGN price target is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

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