UPDATE: SVB Leerink Assumes Amgen (AMGN) at Market Perform

SVB Leerink analyst Andrew Berens assumes coverage on Amgen (NASDAQ: AMGN) with a Market Perform rating and a price target of $256.00.

The analyst comments "We are initiating coverage of Amgen with a Market Perform rating and price target of $256 per share. Management is executing well and driving solid near-medium term growth prospects, but we believe the company needs to significantly enhance its pipeline to be able to grow through late decade LOE pressures. The company should benefit from an acceleration in top-line growth in 2023 (from 2.8% in ‘22E to 6.5% in ‘23E), led by biosimilar Humira (est. 52% or $810mm of $1.6bn total incremental sales in ’23). And its portfolio includes several products that appear set for strong growth over the next several years, including Evenity, Lumakras, Tezspire, Repatha, and Otezla. But at a P/E of 13.1x our 2023E EPS, much of this value appears appreciated by investors. We note that AMGN faces significant erosion risk in the 2025-2030 period, with major franchises such as Prolia, Xgeva, Otezla, Kyprolis, and Enbrel facing losses of exclusivity. At this point, we do not have conviction that the existing pipeline will offset LOE declines, and we believe AMGN needs to continue to pursue M&A to enhance its internal portfolio."

For an analyst ratings summary and ratings history on Amgen click here. For more ratings news on Amgen click here.

Shares of Amgen closed at $247.50 yesterday.

You May Also Be Interested In

• Amgen (AMGN) PT Raised to $388 at Guggenheim
• Cantor Fitzgerald Reiterates Overweight Rating on Enovix Corporation (ENVX)
• Raymond James Starts Polaryx Therapeutics (PLYX) at Strong Buy