NEW YORK, Oct. 14, 2024 — Biotech giant Amgen (AMGN, Financial) stock was downgraded from "buy" to "hold" by analyst firm Truist, with the firm's analysts suggesting the effect of its much-talked-about obesity drug MariTide is already baked in the company's current stock price. Despite the downgrade, Truist has raised its price target for Amgen stock to $333, up from $320, representing a 1% upside based on the stock's Oct. 11 closing price.
Analyst Robyn Karnauskas noted that the upcoming phase 2 data for MariTide, a GLP-1 receptor and gastric inhibitory polypeptide receptor, should be in line with previous findings, and the impact of the competitive landscape for obesity drugs will have already been factored in its price.
In addition to MariTide, Truist covered Amgen's rocatinlimab, a treatment for atopic dermatitis. Though the drug has shown promise, the competitive market in the niche is such that the firm has taken a conservative approach in its modeling. Moreover, additional data on rocatinlimab will be released within the next six to 12 months. Hence, Truist remains cautious about the stock in line with the broader competitive pressures in the biotech space.
