Amgen upgraded to Outperform at BMO Capital

BMO Capital upgraded Amgen (NASDAQ:AMGN) from Market Perform to Outperform on Tuesday, also raising the price target for the stock from $286 to $326 per share.

The investment bank's analysts identify three primary reasons for their optimistic outlook on the biotechnology giant. First, they emphasized Amgen's developing portfolio of oral and injectable metabolic treatments, which they believe offers investors a chance to engage in the obesity metabolic market at a lower premium compared to its competitors.

Second, the analysts noted Amgen's recent acquisition of Horizon Therapeutics, viewing it as a vital move to compensate for the declining revenues in its core business.

Lastly, BMO pointed to Amgen's diverse and promising product pipeline, which they believe has numerous potential catalysts leading into 2024. This pipeline is expected to contribute to further expansion of the stock's multiple, according to BMO's analysis.