Despite a downgrade to Hold from Buy at Truist Securities, Amgen still has a $263.50 consensus target price that implies close to 13% upside, after considering its 2.6% dividend yield. Oppenheimer recently raised its price target to $280 from $270. Credit Suisse even sees Amgen rising up to $290, with more than 20% in implied upside.
Amgen is still growing its sales and earnings, but it is barely valued at 15 times expected earnings. Its $239 stock price also generates a market capitalization of $140 billion, which currently is unrivaled in biotech. Amgen has a 42-week trading range of $177.05 to $264.97.
Gilead Sciences Inc. (NASDAQ: GILD), once the king of biotech, has seen its growth peter out. It was not even the biotech chosen to replace Pfizer in the Dow. Gilead also has been using some leverage to make acquisitions in an effort to diversify its sales and to get a deeper pipeline in cancer and other drugs. Its remdesivir is also shown to greatly reduce the healing time in COVID-19 patients.
With Gilead shares still stuck close to $64, RBC Capital Markets recently raised its price target to $86 from $82. SVB Leerink has an Outperform rating but, despite being lowered, its target price still $88. Prior to the acquisition announcement, Oppenheimer reiterated its Outperform rating and lifted its target to $105.
Gilead remains a biotech that trades like a study low-growth big pharma stock. It has an $80 billion market cap, and the consensus price target is $78.92. Gilead is also valued at only about 10 times earnings, and the $6.63 per share in earnings from 2019 is now expected to hit $6.99 in 2020 and then $7.00 in 2021.
Neurocrine Biosciences Inc. (NASDAQ: NBIX) has nearly a $10 billion market cap, and its $103.50 share price compares to Refinitiv’s consensus earnings estimates of $2.46 per share in 2020 and $4.03 in 2021. Sales are expected to rise 44% to $1.14 billion in 2020 and then to $1.43 billion in 2021.
BofA Securities recently added the stock to its prized US 1 list. The firm’s official rating is Buy, and it carries a $134 price objective. The recent addition to the US 1 List ahead of earnings on November 9 calls for strong sales of Ingrezza, after sales momentum in the second quarter despite headwinds from COVID-19. Note that Neurocrine’s sales force is back in the field and that its market penetration may be only one-fifth of its potential. The firm sees a floor valuation here that is supported by several revenue streams from approved products, such as Ongentys and AbbVie-partnered Orilissa and Oriahnn. The firm also believes that the midstage pipeline is undervalued.
At $103.50 a share, Neurocrine has a consensus target price is $140, and its 52-week range is $72.14 to $136.26.