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Amgen Price Target Raised by Various Analysts

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Analysts were upbeat following Amgen's (NASDAQ: AMGN) solid second quarter results after the company reported after the bell on Tuesday.

Credit Suisse raised its price target and earnings target for Amgen. This came as a result of Amgen offering a higher guidance range (Non-GAAP EPS: $8.20 to $8.40 versus $7.90 to $8.20 previously).

Credit Suisse stated in its report to clients:
“We have made minor changes to our model to reflect the restructuring initiative. Our increased TP of $135 (previously $125) is based on a ~15.3x multiple on our new '15 EPS of $8.83, representing an unchanged parity to the '15 S&P 500 multiple.” Credit Suisse has a neutral rating on the company, and continues to reiterate that rating despite the positive guidance.”

Citigroup seemed a little more upbeat in its note to clients (Citigroup has a buy rating on Amgen):
“We have updated our model to reflect a lower tax rate and conservative OpEx implied in FY14 guidance and we have raised our: 1) Prolia estimates due to stronger demand, and 2) Neulasta, Neupogen, Epogen estimates as we expect a slower onset of competition in the US/EU. Our new TP is $159 (+$4) based on 17x'15 EPS.”

However, to round it all off, Jefferies offered a slightly more conservative price target:
“Our PT of $142 is based on: (1) P/E multiple of ~16x (2015 P/E for big pharma) to our 2015 EPS forecast of $9.25, discounting at 9%, and (2) sum-of-the parts NPV analysis. Risks associated with Amgen include pricing pressure, competition, and regulatory delays/failure of evolocumab (AMG-145).”

Currently, Amgen is trading at $129.78 (Wednesday trading session), depending on who you want to listen to, the upside varies.

Latest Ratings for AMGN

DateFirmActionFromTo
Oct 2014CitigroupMaintainsBuy
Oct 2014Credit SuisseMaintainsNeutral
Oct 2014NomuraUpgradesNeutralBuy

View More Analyst Ratings for AMGN
View the Latest Analyst Ratings

Posted-In: Citigroup Credit Suisse JefferiesAnalyst Color Price Target Analyst Ratings

 

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