Aug 11 (Reuters) - RBC Capital Markets initiated Amgen Inc (AMGN.O) with an “outperform” rating, and said the company had “turned the ship around,” after two years of deteriorating earnings and decelerating growth.
“We believe this is a timely opportunity to own Amgen shares given the company is positioned to accelerate its bottom line growth to 10-15 percent over the next few years,” said the brokerage, which set a price target of $72 on the stock.
“We believe Amgen is ‘underowned’ at most institutions given the last two years of poor fundamentals and should see a major revival of interest with denosumab,” the brokerage said.
RBC expects the drug, denosumab, to be approved in October for the treatment of post-menopausal osteoporosis and launched in 2010.
The U.S. Food and Drug Administration’s advisory panel is set to review the drug on Thursday and the review is likely to focus on safety, particularly the risk of serious infections, according to analysts. [ID:nN1043119]
Shares of Amgen closed at $61.24 Monday on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Aradhana Aravindan)