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We came across a bullish thesis on Amgen Inc. (AMGN) on Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on AMGN. Amgen Inc. (AMGN)'s share was trading at $281.22 as of May 2nd. AMGN’s trailing and forward P/E were 25.64 and 13.48 respectively according to Yahoo Finance.
A doctor in a laboratory conducting experiments to develop new biopharmaceutical drugs.
Amgen (AMGN) delivered a strong first-quarter performance in 2025, with total revenue rising 9% year-over-year and adjusted earnings per share increasing 24%. The company also achieved a robust non-GAAP EBIT margin of 45.7%, reflecting its continued operational efficiency. Despite these results, the stock declined post-earnings, a move that appears disconnected from the underlying fundamentals, as Amgen has historically shown delayed market reactions to positive earnings reports. The company’s product portfolio remains solid, with 14 therapies posting double-digit sales growth across diverse therapeutic areas. While Amgen faces the impending loss of exclusivity on Prolia, a leading osteoporosis drug, it is well-positioned to offset this with its advancing pipeline. Key late-stage candidates include MariTide, an anti-obesity therapy with blockbuster potential in the fast-growing metabolic disease market; Imdelltra, a bispecific T-cell engager showing promising survival benefits in small-cell lung cancer trials; and Rocatinlimab, an anti-OX40 monoclonal antibody targeting moderate-to-severe atopic dermatitis, a sizable and expanding dermatology market. These assets could significantly bolster Amgen’s revenue trajectory in the coming years. The company maintained its 2025 guidance following the Q1 report, signaling confidence in its near-term outlook. Given the strength of its current portfolio, pipeline potential, and consistent execution, Amgen remains a fundamentally sound business with long-term growth drivers intact. Based on these factors, the company’s fair value is estimated at $335 per share, suggesting meaningful upside from current trading levels and an attractive risk/reward profile for investors.
Amgen Inc. (AMGN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held AMGN at the end of the fourth quarter which was 68 in the previous quarter. While we acknowledge the risk and potential of AMGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMGN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.