CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our target at $295, 15.0x our 2024 EPS, slightly above AMGN’s 10-year historical forward P/E average. We raise our 2023 EPS view by $0.38 to $18.80 and 2024’s by $0.12 to $19.68. Amgen reported Q3 EPS of $4.96 vs. $4.70 (+6% Y/Y), $0.25 above our estimate and $0.28 above the S&P Capital IQ consensus. Q3 revenues of $6.9B vs. $6.7B, up 4% Y/Y, were $45M below consensus and $237M below our estimate as the non-biologic treatment for chronic inflammatory diseases (Otezla, -10% Y/Y, $462M) and cancer treatment (Lumakras, -31% Y/Y, $48M) sales were below our forecasts. The large $28B Horizon acquisition that closed early October has been included in AMGN’s raised guidance to the $28.4B-$28B range versus $26.6B-$27.4B earlier. Horizon generated $945M revenues in Q3 (+2% Y/Y), driven largely by key thyroid eye disease Tepezza ($453M). We see the transaction positive as it will enable Amgen to broaden its portfolio in the fast growing rare diseases arena, with three key drugs (Tepezza, Krystexxa, and Uplinza).