HSBC Downgrades Amgen Stock Rating to Hold Due to Valuation Concerns

HSBC downgraded Amgen's stock rating to Hold from Buy due to valuation concerns. The bank also lowered its price target to $425 from $445.

The stock has declined nearly 12% over the past week, but remains undervalued at current levels with a P/E ratio of 24.3, according to InvestingPro analysis.

HSBC analyst Morten Herholdt noted that Amgen's shares have re-rated on strong execution and positive estimate revisions, leaving them trading around fair value.

The bank's long-term thesis remains unchanged, but sees limited near-term upside due to steady patent expiries capping growth at low single digits. Major pipeline drivers are back-ended until late 2027.