Deutsche Bank has upgraded biotechnology giant, Amgen, Inc.(AMGN) to a “Buy” Monday.
The firm has upgraded AMGN from a “Hold” to a “Buy,” and have increased their price target from $84 to $108. This new price target suggests a 18% increase over the stock’s current price of $88.26, and a 40% increase over the stock’s YTD price of $64.05.
An analyst from the firm commented, “despite a recent move in shares, we continue to see upside as Amgen still trades at a discount to its pharma peers despite better ROE (28% vs 21%), EPS growth (14.8% vs. -0.3%) . We think the co’s dividend will continue to grow closer to the pharma avg over the next 2 years (we model 35-40% dividend growth and a dividend yield of 3% by 2014-ABOVE consensus). Amgen also looks attractive from the biotech view, as the co trades at a 20-30% discount vs its biotech peers despite EPS growth that is only 10% lower than the group.”
Amgen shares were up $1.20, or 1.38% on Monday afternoon.
The Bottom Line
Shares of Amgen, Inc. (AMGN) have a 1.65% dividend yield, based on Friday’s closing stock price of $87.16. The stock has technical support in the $80-$82 price area. The shares are trading near 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.