HSBC Trims Amgen (AMGN) Price Target, Maintains Buy Rating
A pharmacist filling a prescription for a complex drug developed by the company.
In a research note to clients, HSBC warned that a 25% U.S. tariff on certain pharmaceutical products could reduce earnings for companies like Amgen Inc. (NASDAQ:AMGN) by as much as 6% to 14%, depending on the final structure of the policy. While details remain fluid, analysts are increasingly factoring in trade-related headwinds as part of broader risk assessments across the healthcare sector.
Beyond direct tariff exposure, HSBC also highlighted the potential for indirect financial impacts, including shifts in effective tax rates. These changes could further complicate earnings forecasts and weigh on investor sentiment heading into the second half of the year. Despite the lowered target, HSBC maintained a positive long-term view on Amgen, citing the company's robust pipeline and diversified portfolio of oncology, inflammation, and rare disease therapies. However, the firm acknowledged that near-term macro risks may cloud what has otherwise been a solid year for the biotech giant.
While we acknowledge the potential of AMGN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 Healthcare AI Stocks to Buy According to Hedge Funds and 10 Best Industrial Automation Stocks to Buy for the Next Decade Disclosure: None. This article is originally published at Insider Monkey.
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