HSBC Downgrades Amgen Stock to Hold on Valuation Concerns

HSBC downgraded its rating on Amgen stock to Hold from Buy, citing valuation concerns. The bank lowered its price target to $425 from $445. Analyst Morten Herholdt stated that the shares have re-rated due to strong execution and positive estimate revisions, leaving them trading around fair value.

The company's long-term thesis remains unchanged, with HSBC believing Amgen can navigate the patent cliff through rare disease exposure, new launches, and a growing biosimilar portfolio. However, the firm sees limited near-term upside due to steady patent expiries capping growth at low single digits.

HSBC also cited negative Lp(a) read-through risk from the recent pelacarsen announcement, viewing the risk-reward as more balanced. Amgen has raised its dividend for 15 consecutive years and maintains strong profitability metrics.