Amgen lifted at BMO Capital as analysts see 22% potential upside

investing.com:

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

This bullish stance stems from three key factors driving optimism for the biotech giant's future, according to analysts at the investment bank.

Firstly, BMO highlights Amgen's burgeoning pipeline of oral and injectable metabolic drugs as giving «investors the opportunity to play in the obesity metabolic space without the same premium as peers.» BMO said it remains positive on LLY in the same area, but they view Amgen as a genuine contender in the space.

Secondly, analysts at BMO highlighted the recent acquisition of Horizon Therapeutics is seen as a crucial step towards replenishing Amgen's revenue base in the face of ongoing challenges in its core business.

Finally, the analysts point to Amgen's «interesting pipeline,» which it says has a rich catalyst path extending into 2024. This pipeline could drive further multiple expansion for the stock, said BMO.