KEY HIGHLIGHTS
- Clinical trials for Amgen’s GLP-1 therapy MariTide demonstrated approximately 20% weight reduction, rivaling Eli Lilly’s Zepbound performance
- The company announced MariTide may advance to a quarterly injection schedule, surpassing its current monthly administration
- Truist Securities increased its AMGN price objective to $325 from $319 while keeping a Hold rating
- Truist projects first-quarter 2026 sales at $9.18 billion, significantly exceeding Wall Street’s $8.58 billion estimate
- Wall Street observers believe AMGN could return to its $388 peak, representing an 11% upside from present prices
Since April 2025, Amgen has delivered a 25% return, modestly underperforming the S&P 500’s 29% advance during the identical timeframe. The biotechnology giant currently commands a $186.4 billion market capitalization and trades at approximately 15 times forward earnings, positioning it near the high end of its historical five-year valuation range.
The company’s experimental GLP-1 therapy MariTide is capturing heightened interest across the investment community. Clinical trial volunteers experienced weight reductions approaching 20%, positioning the drug competitively against Eli Lilly’s Zepbound, which achieves weight loss in the low-to-mid 20% range. MariTide’s performance also exceeds that of Lilly’s oral alternative Foundayo, which demonstrated approximately 12% weight reduction in clinical studies.
During January’s JPMorgan Healthcare Conference, Amgen executives indicated MariTide may transition to quarterly administration. This represents a significant improvement over the existing monthly dosing regimen and would offer a substantial convenience advantage compared to Zepbound’s weekly injection requirement.
The company doesn’t require market dominance in the GLP-1 category to generate meaningful shareholder value. JPMorgan research suggests the overall GLP-1 market could reach $200 billion annually by decade’s end. Even a modest $5 billion in MariTide sales would represent approximately 13% growth to Amgen’s projected 2026 revenue base of $37.8 billion.
Phase 3 clinical data readouts for MariTide are anticipated in early 2027. As this milestone nears, Wall Street analysts typically revise revenue projections upward, transitioning from cautious risk-adjusted models to more optimistic scenarios.
Truist Increases Target Ahead of Expected Q1 Outperformance
Truist Securities elevated its AMGN price objective to $325 from $319 this week while maintaining its Hold rating. The investment bank anticipates first-quarter 2026 revenue reaching $9.18 billion compared to the Street consensus of $8.58 billion, with adjusted earnings per share of $5.24 versus the $4.77 consensus.
Truist’s quarterly revenue projections exceed consensus across multiple key products, including Repatha ($874 million), Prolia ($878 million), Evenity ($598 million), and Tezspire ($487 million). The firm also boosted long-term revenue estimates for Krystexxa following enhanced patent protection extending through 2040.
The investment bank increased its probability-of-success assessment for MariTide, pointing to an improved commercial opportunity profile in the obesity treatment landscape.
Established Product Portfolio Reinforces Investment Thesis
Separate from its GLP-1 ambitions, Amgen’s existing franchise continues performing well. Fourth-quarter revenue exceeded Wall Street projections, while earnings surpassed estimates by nearly 12%. The management team has delivered better-than-expected quarterly results in 17 of the past 20 reporting periods. Analysts anticipate total revenue growth approaching 3% for 2026, supported by multiple recently launched therapies ramping up sales.
The company recently completed a $4 billion debt refinancing at more favorable rates. This financial engineering limits future interest expense growth, potentially allowing incremental MariTide revenue to translate more efficiently into bottom-line expansion.
Cantor Fitzgerald maintains a Neutral stance with a $350 price objective. William Blair reaffirmed its Outperform rating following successful Phase 3 data for TEPEZZA, Amgen’s thyroid eye disease treatment, which achieved a 77% proptosis response rate compared to 19.6% for placebo.
AMGN reached an all-time high of $388 earlier this year. That level represents approximately 11% appreciation from current market prices.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
