Shares of Amgen Inc. gained 1.1% premarket on Tuesday after BMO Capital Markets analysts upgraded the stock to outperform, citing the company’s “underappreciated” potential in the obesity drug market.
A Promising Pipeline
Amgen is working on an innovative approach to combating obesity with a once-monthly injection and a pill for patients. This exciting pipeline offers investors a chance to participate in the obesity metabolic space without the premium found in other companies. According to BMO analyst Evan David Seigerman, Amgen may very well be “the 2024 value obesity play.”
A Steady Climb
While Amgen shares have only increased by less than 5% this year, its competitors in the obesity-drug market have experienced substantial growth. Eli Lilly & Co. surged by 58%, and Novo Nordisk climbed by 46%. However, despite being a bit more under the radar, Amgen’s potential should not be overlooked.
Amgen has made significant progress in other areas as well, including oncology and inflammation. The company has demonstrated its commitment to growth by successfully closing its acquisition of Horizon Therapeutics in October, overcoming challenges from antitrust regulators.
In light of these impressive developments, the analysts at BMO have raised their price target on Amgen shares to $326 from $286.
Amgen Inc. is poised to make a powerful impact in the obesity drug market and beyond, offering investors an exciting opportunity for future success.