HSBC Slashes Amgen Stock Rating Amid Valuation Worries

HSBC downgraded Amgen's (AMGN) stock rating to Hold from Buy and lowered its price target to $425 from $445, citing valuation concerns. The biotech giant has declined nearly 12% over the past week.

According to HSBC analyst Morten Herholdt, shares have re-rated on strong execution and positive estimate revisions, leaving the stock trading around fair value and close to the firm's target price of $425.

The long-term thesis remains unchanged that Amgen can work through the patent cliff via rare disease exposure, new launches, and a growing biosimilar portfolio. However, HSBC sees limited near-term upside due to steady patent expiries, which will cap growth at low single digits.