September 12, 2012 at 08:50 AM EDT
Robert Baird Cuts Amgen to “Neutral”; Recent Rally Overdone? (AMGN)

Biotech giant Amgen, Inc. (AMGN) on Wednesday caught a big downgrade from analysts at Robert W. Baird.

The firm cut its rating on AMGN from “Outperform” to “Neutral” while lowering its price target from $84 to $83. That new target suggests zero upside to the stock’s Tuesday closing price of $83.94.

A Robert Baird analyst commented, “We agree AMGN’s defensive nature, increased dividend and strong cash flow remain considerations for large-cap managers making cross-sector choices. However, from our vantage point, given the stock’s +75% move since August 2011, this story appears to have largely played out for the near/intermediate term.”

Amgen shares were mostly flat in premarket trading Wednesday.

The Bottom Line
Shares of Amgen (AMGN) have a 1.72% dividend yield, based on last night’s closing stock price of $83.94. The stock has technical support in the $76-$80 price area. The shares are trading at all-time highs.

Amgen, Inc. (AMGN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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