Amgen Stock Falls After 'Boring' Q3 Beat

At the time of writing, shares of Amgen were trading down 1.67 percent at $174.54.

Analysts Eric Schmidt and Jeff Chen noted that the company reported revenues and non-GAAP earnings per share ahead of the consensus estimates, with the upside stemming mostly from cost controls. The analysts also said the company upwardly adjusted its 2017 guidance, citing improved and sustainable operating margins in the mid-50-percent range.

Breaking out the top-line number, the analysts said product sales of $5.45 billion were in line with the consensus, with Enbrel sales, though down, coming in line. Neulasta and Sensipar sales were above expectations, while Xgeva and LDL drug Repatha sales were underwhelming, the analysts added.

Cowen said the company sees the weak Repatha sales as a function of negative accounting and inventory adjustments, although it is optimistic about the outlook due to an expanded label, updated treatment guidelines and improved reimbursement.

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The firm noted that the company said it intends to provide 2018 financial guidance in January and issue longer-term financial guidance at an analyst meeting, it is planning for 2018.

Giving an update on Puerto Rico manufacturing facility impacted by Hurricane Maria, the company said its efforts to re-establish operations will have a modest economic impact on 2017 and no impact on 2018 financials, the firm said. The firm added that the company does not see an interruption in its ability to supply the market.

On valuation, the firm said the shares of the company are undervalued, given the fears over biosimilars competition and a lack of clarity over key pipeline assets.

"We expect Amgen shares to outperform as competitive threats wane in relation to the prospects for newer drugs like Repatha," the firm said.

The firm views the sBLA approval of new Repatha label based on FOURIER, AHA update on LDL treatment guidelines and 2018 financial guidance due to be announced in January 2018 as forthcoming catalysts.