Freedom Capital Markets on Thursday adjusted its view of Amgen (NASDAQ:AMGN), downgrading the biotech from Buy to Hold while increasing its price target to $375 from $360. The revised target remains slightly above the stock's prevailing market price of $366.20, but below Amgen's 52-week peak of $385.12.
The research house said the change in recommendation came even as Amgen reported fourth-quarter results that outperformed the firm's expectations. Freedom highlighted that the company's primary growth drivers are intact and that several newer products are gaining momentum. InvestingPro data cited by the firm shows Amgen delivered nearly 10% revenue growth over the past twelve months, a performance metric the analyst team viewed positively.
Following the earnings release, Freedom raised its forecasts for both revenue and earnings per share after noting the low end of Amgen's 2026 revenue guidance exceeded their prior estimates. Nevertheless, the firm flagged valuation as a central consideration in the downgrade: they believe Amgen's shares are approaching fair value, a conclusion that aligns with InvestingPro's Fair Value calculation indicating the stock is currently fairly valued.
Freedom also pointed to ongoing top-line pressure tied to biosimilar competition as a material headwind. In particular, launches of biosimilars for Prolia and XGEVA represent persistent challenges as Amgen faces loss-of-exclusivity dynamics for those products.
Additional metrics highlighted in the coverage included Amgen's attractive PEG ratio of 0.29 and the company's track record of dividend increases, having raised payouts for 15 consecutive years, data that InvestingPro reports underline.
Market response from other firms
Amgen's fourth-quarter performance prompted several investment firms to revise their price targets. RBC Capital lifted its target to $360, noting Amgen's reported revenue of $9.87 billion beat the consensus estimate of $9.47 billion, and earnings per share of $5.29 surpassed the expected $4.73. RBC cited strong sales of products including Prolia, Repatha, Evenity, and Uplizna.
TD Cowen increased its price target to $420 while retaining a Buy rating, and described Amgen's fiscal 2026 guidance as reassuring in the context of exclusivity concerns. Guggenheim raised its target to $347 on the strength of the earnings report and guidance that exceeded expectations. Cantor Fitzgerald set a new target of $350 after a revenue beat of $396 million over consensus and an EPS result that topped views by $0.60.
On the other side, BofA Securities maintained an Underperform rating with a $304 price target, pointing to forthcoming catalysts that could influence Amgen's trajectory.
Takeaway
Freedom Capital's downgrade reflects a shift in emphasis from earnings momentum to valuation considerations, even as the company reports stronger-than-expected results and raises forward guidance. Investors and market participants will continue to weigh revenue and EPS outperformance against competitive pressure from biosimilars and loss-of-exclusivity risks.