HZNP - Amgen upgraded at Wells Fargo citing a post-Horizon deal opportunity

2023-03-13 11:49:27 ET

• Amgen ( NASDAQ: AMGN ) traded higher Monday morning after Wells Fargo upgraded it, citing an opportunity following the company's ~$28B deal to acquire rare disease drugmaker Horizon Therapeutics ( HZNP ).
• "While we are not big fans of the HZNP deal and the price at which it was done, we note that it is in the rear-view mirror now," the analyst Mohit Bansal and the team wrote, adding that concerns on the acquisition have caused weakness.
• Assuming no U.S. sales growth for Horizon's ( HZNP ) thyroid eye disease therapy Tepezza, and modest growth for the company's other divisions, the analysts see $247 future value for Amgen ( AMGN ).
• The team noted that "the stock is trading below this level," adding, "AMGN's marketing strength makes worst case less likely."
• However, Wells Fargo lowered the Amgen ( AMGN ) price target to $265 from $275 based on DCF valuation.
• Read: Seeking Alpha contributor Edmund Ingham upgraded Amgen ( AMGN ) to Buy from Hold after the company's FY22 results.

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