Freedom Broker: strong quarter prompts Amgen price target hike to $450

Freedom Broker analysts raised their price target for Amgen Inc. (AMGN) shares from $375 to $450 and reiterated their “Buy” rating. In their view, the second-quarter results confirmed the resilience of the business: growth from newer products is offsetting pressure on the mature portfolio, and management’s increase to full-year guidance creates conditions for further re-rating of the stock. At the current price of $417,20, the upside to the target price is about 7,9%.

Amgen is one of the largest players in the biotech market

Amgen is a U.S. biotechnology company that develops and manufactures drugs for the treatment of oncology, cardiovascular, inflammatory and rare diseases. The company’s investment narrative today is largely built around the transition from mature products to a faster-growing innovative portfolio, including the promising obesity therapy candidate MariTide.

Results beat expectations

Amgen delivered one of its strongest quarters in a long time versus market expectations, Freedom Broker analysts note. Amgen’s revenue in Q2 2026 rose 10% year over year to $10,1 bn. Adjusted earnings per share (Non-GAAP EPS) increased 4% to $6,29, which is 12% above the consensus estimate of $5,62.

On a GAAP basis, EPS rose 65%, from $2,65 to $4,37. Operating income increased from $2,7 bn to $3,5 bn, and the operating margin rose by 6,5 pp to 36,8%. Free cash flow totaled $3,5 bn versus $1,9 bn a year earlier. The strong results were accompanied by higher spending on research and development: adjusted R&D expenses increased 10%.

Repatha, EVENITY and UPLIZNA are becoming key drivers

Innovative products showed strong momentum. Combined sales of the six main growth drivers increased 26% year over year and accounted for almost 70% of Amgen’s drug sales in Q2.

Sales of the “bad” cholesterol-lowering drug Repatha rose 37% to $953 mn. The drug became the largest product in the portfolio, and additional support for its sales outlook came from Phase III study results, which showed a 30% reduction in the risk of cardiovascular problems in certain patients.

Revenue from the drug for the treatment of severe osteoporosis in women, EVENITY, increased 38% to $714 mn. The therapy for severe autoimmune diseases, UPLIZNA, posted even stronger dynamics: sales jumped 90% to $335 mn. Amgen acquired the rights to UPLIZNA as part of its purchase of biopharmaceutical company Horizon Therapeutics for $27,8 bn in October 2023. According to the analysts, the product confirms the strategic value of the Horizon deal and can sustain high double-digit growth at least over the next two years.

Sales of the maintenance therapy for severe bronchial asthma, TEZSPIRE, rose 42% to $486 mn. Growth is supported by an increase in new prescriptions and the expansion of the drug’s use. In oncology, sales of the anti-cancer drug BLINCYTO increased 23% to $472 mn, while IMDELLTRA surged 115% to $288 mn.

Amgen focused on MariTide

This quarter, the company discontinued development of the experimental obesity drug AMG 513. Freedom analysts consider this a rational decision, as it allows resources to be concentrated on MariTide, Amgen’s main candidate for entering the obesity therapy market. It is a drug for the treatment of obesity and type 2 diabetes that can reduce body weight by about 20% when administered once a month or less frequently 

The key potential advantage of MariTide, the analysts say, is its duration of action. The drug may be used initially once every four weeks, and then at intervals of eight or even 12 weeks. This profile could make it attractive to patients who have already lost weight with more frequently administered drugs and are looking for a convenient maintenance-therapy option.

At the same time, competition in the weight-loss drug market will be intense. Therefore, in the analysts’ view, the key factor in MariTide’s success will be not only efficacy, but also tolerability and ease of use.

What could support the stock

According to Freedom Broker, the key growth drivers for AMGN could be slower-than-expected sales erosion after products lose exclusivity and further progress in the clinical pipeline, primarily in obesity therapy. The main risks are intensifying competition from generics and biosimilars, disappointing late-stage clinical trial results, and the potential impact of tariffs on the business.

Amgen’s fourth-quarter results

In September 2025, Amgen announced investments of more than $500 mn in a new science and innovation center at its California headquarters. In Q4 2025, Amgen also posted results above market expectations: revenue increased 9% year over year to $9,9 bn versus the consensus forecast of $9,46 bn, and adjusted earnings per share came in at $5,29 versus the expected $4,73. 

The 7% sales increase was driven by a 10% rise in volumes, which partially offset a 4% decline in net prices. For full-year 2025, Amgen’s revenue rose 10% to $36,8 bn; 18 products reached record sales, and 14 of them exceeded $1 bn. At the beginning of 2026, the company also presented its outlook for the year: revenue was expected in the range of $37–38,4 bn, and adjusted EPS at $21,6–23,0. 

Not an individual investment recommendation.