Amgen Price Surge Raises Valuation Questions Amid Analyst Target Hikes

Amgen (AMGN) shares have seen significant gains following its second quarter results and drug portfolio updates. Analysts, including Argus, have lifted their price targets for the biotech company, with Argus increasing its target to $460 from $375 while maintaining a Buy rating.

The share price of Amgen has risen 18.49% in the past 30 days and 51.76% over the last year, indicating strong momentum after the second quarter update and portfolio news.

However, some analysts believe that Amgen may be fully priced at its current level of $433.73 per share. A narrative on Simply Wall St suggests that the company is around 20.5% overvalued based on a fair value estimate of $360.

But our DCF model paints a different picture, suggesting that Amgen could be trading at a discount with an estimated future cash flow value of $691.35 per share.