Assessing Amgen (AMGN) Valuation as Shares Show Renewed Momentum in the Biotech Landscape

Amgen (AMGN) shares have shown some interesting moves recently, catching the attention of investors after delivering moderate gains over the past month. As the broader biotech sector evolves, Amgen’s performance offers a unique perspective for those watching large-cap pharmaceutical stocks.

See our latest analysis for Amgen.

While Amgen’s recent 1-month share price return of 4.97% hints at some renewed investor interest, the longer-term picture is more mixed, with its total shareholder return down 8.7% over the past year but still up 44% over five years. Momentum seems to be picking up after a quieter spell as markets weigh Amgen’s role in biotech’s next chapter.

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With Amgen’s shares trading below analyst price targets and earnings showing steady growth, investors might be wondering if the current price offers real value or if the market is already factoring in brighter days ahead.

Most Popular Narrative: 7% Undervalued

Amgen's most widely-discussed narrative sees fair value above last close, suggesting the shares could have room to catch up. The story centers on rapid innovation and strategic growth levers that analysts believe may reshape Amgen's profile among large-cap peers.

Advancements in personalized and targeted therapies, reflected in the robust late-stage pipeline (e.g., MariTide for obesity/type 2 diabetes, Repatha and olpasiran for cardiovascular, multiple bispecific T-cell engagers for oncology), position Amgen to launch high-margin, first-in-class products that drive both top-line growth and margin expansion in the coming years.

Read the complete narrative.

Curious which game-changing therapies lie at the heart of this valuation? The narrative is built on big assumptions such as future profit margins, growth rates, and bold new treatments. Tap in to uncover the numbers and forces moving the price target.

Result: Fair Value of $311.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing drug pricing pressures and biosimilar competition could impact Amgen’s future growth, even if current forecasts look optimistic.

Find out about the key risks to this Amgen narrative.

Build Your Own Amgen Narrative

If you’re looking to dig deeper or have your own view on Amgen’s potential, you can build your personalized narrative in just a few minutes using Do it your way.

A great starting point for your Amgen research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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