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Amgen (NASDAQ: AMGN) will announce fourth-quarter earnings results this Monday, February 07, after the market closes.
Amgen shares have weakened slightly above 1% since the beginning of the 2022 year, and the current price stands at $222.11.
Bank of America downgraded shares of Amgen
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Amgen will announce fourth-quarter earnings results tomorrow; the consensus earnings per share estimate stands at $4.05 (+6.3% Y/Y), while the consensus revenue estimate is $6.88 billion (+3.8% Y/Y).
Amgen reported solid results in the last quarter, and the company will continue to grow by focusing on international expansion as well as biosimilars. Over the last two years, Amgen has beaten earning per share and revenue estimate 88% of the time.
At the beginning of 2022, Bank of America downgraded shares of Amgen as “growth skepticism” is likely to persist until the company demonstrates a clear return to “strong, volume-driven revenue upside” for several of its key franchises. Bank of America added:
Amgen’s growth is more likely to be in line with its peers even with a broader Otezla label and a strong rollout of Lumakras and Tezspire drugs.
Geoff Meacham, an analyst from Bank of America, assigned a price target of $255 on Amgen stock (prior target was$285) and also said that the stock underwhelmed in 2021 due to lingering COVID-19 headwinds and net pricing pressures.
Despite this, Amgen has a strong position in the market; the company continues to pay an attractive dividend, and shares of this company represent solid long-term investment at the current price.
The company has been paying a dividend since 2011, and it recently announced dividend raise from $1.76 to $1.94 per quarter. Salveen Richter, an analyst from Goldman Sachs, said that he sees multiple opportunities at Amgen, and he noted that Amgen is currently trading at more than a 30% discount to U.S. biopharma peers.
Technical analysis
Amgen shares weakened slightly above 1% since the beginning of the 2022 year, but if the company posts strong fourth-quarter earnings results, the share price could be above the current levels.
If the price jumps above $230, it will signal to buy Amgen shares, and the next target could be $240.
On the other side, if the price falls below $210 support, it would be a “sell” signal, and we have the open way to $200.
Summary
Amgen will announce fourth-quarter earnings results this Monday, and if the company posts strong fourth-quarter earnings results, the share price could be above the current levels. Amgen could deliver substantial shareholder value for many years to come, but Bank of America downgraded Amgen and assigned a “neutral” rating until the company demonstrates strong revenue growth.
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