Amgen Stock Outlook: Is Wall Street Bullish or Bearish?
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With a market cap of $151.2 billion, Amgen Inc. (AMGN) is a leading American biotechnology company headquartered in Thousand Oaks, California. Founded in 1980, Amgen specializes in discovering, developing, manufacturing, and delivering human therapeutics and has grown into one of the world's largest independent biotech firms.
Shares of the drugmaker behemoth have underperformed the broader market over the past 52 weeks. AMGN has surged 1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.3%. However, AMGN stock has risen 7.9% on a YTD basis, outperforming SPX's 3.3% YTD dip.
Looking closer, the company has surpassed the Health Care Select Sector SPDR Fund's (XLV) 1.4% drop over the past 52 weeks and a marginal rise this year.
On May 1, Amgen delivered Q1 2025 earnings, and its shares dropped 2.5%. The company exceeded Wall Street expectations with an adjusted EPS of $4.90 and revenue of $8.1 billion. Key products like Prolia and Repatha saw strong sales growth, though Enbrel and Tepezza experienced declines.
Amgen reaffirmed its full-year guidance and continues to focus on expanding its pipeline, including the promising obesity drug MariTide and its clinical-stage programs. The company is also investing $900 million to expand its U.S. manufacturing capabilities.
For fiscal 2025, ending in December, analysts expect AMGN's EPS to grow 3.8% year-over-year to $20.59. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 30 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” 13 “Holds,” one “Moderate Sell,” and two “Strong Sells.”
The configuration is less bullish than a month ago, when the stock had 14 “Strong Buy” ratings.
On May 2, RBC Capital Markets lowered its price target on Amgen from $324 to $320 but maintained an “Outperform” rating, following the company’s better-than-expected Q4 2024 earnings.
AMGN’s mean price target of $317.69 represents a premium of 13% from the current market prices. The Street-high price target of $400 implies a modest potential upside of 42.2% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.