Amgen (NASDAQ:AMGN) saw more than a 4% surge in its shares yesterday after Leerink Partners raised its rating from Market Perform to Outperform and increased its price target from $267 to $318.

The analysts anticipate growth in various sectors including oncology, obesity, and cardiovascular disease, driven by a surge in pipeline developments. The recent completion of Amgen's $28 billion acquisition of Horizon Therapeutics is also expected to put an upward strain on EPS.

The analysts highlighted that the upgrade was driven by both expected earnings and expansion in valuation. They further mentioned the potential for major pipeline candidates to hit the market towards the end of the decade, raising projected revenues for 2031 from $14.3 billion to $19.3 billion and increasing the 8-year revenue CAGR from 3% to 5% for the period 2023-2031.