Analysts see ‘value obesity play’ in Amgen’s underappreciated potential
- Amgen shares rise 1.1% after upgrade by BMO Capital Markets
- Analysts see ‘underappreciated’ potential in Amgen’s obesity drug market
- Amgen offers investors opportunity to play in obesity metabolic space without premium
- Amgen shares have climbed less than 5% this year, while competitors have gained significantly
- Amgen also making progress in oncology and inflammation sectors
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. The company is working on a once-monthly injection as well as a pill for patients with obesity. BMO analyst Evan David Seigerman wrote in a research note that Amgen may be ‘the 2024 value obesity play.’ Amgen shares have climbed less than 5% so far this year, while obesity-drug leaders Eli Lilly & Co. and Novo Nordisk have gained 58% and 46%, respectively. Amgen has also made progress on an interesting pipeline of assets in oncology and inflammation.
Public Companies: Amgen Inc. (AMGN), Eli Lilly & Co. (LLY), Novo Nordisk (NVO)
Private Companies:
Key People: Evan David Seigerman (BMO analyst)
Factuality Level: 7
Justification: The article provides information about an analyst upgrade of Amgen Inc. stock and the company’s potential in the obesity drug market. It also mentions the progress Amgen has made in oncology and inflammation, as well as its acquisition of Horizon Therapeutics. The information provided seems to be based on the analyst’s research note and market performance of other obesity-drug leaders. However, the article lacks specific details about the pipeline drugs and their stage of development, and it does not provide any counterarguments or alternative perspectives. Overall, the article appears to be based on factual information but could benefit from more comprehensive reporting.
Noise Level: 7
Justification: The article provides some relevant information about Amgen’s potential in the obesity drug market and its progress in oncology and inflammation. However, it lacks scientific rigor and intellectual honesty as it does not provide any evidence or data to support the claims made by the BMO Capital Markets analysts. Additionally, the article does not explore the consequences of Amgen’s actions on those who bear the risks, nor does it provide actionable insights or solutions for the reader.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Amgen Inc.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses an upgrade in the stock rating of Amgen Inc. by BMO Capital Markets analysts, citing the company’s potential in the obesity drug market. There is no mention of any extreme event or its impact.
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