Shares of Amgen (NASDAQ: AMGN) have been rising of late after a recent analyst upgrade generated some bullishness around the biotech company. Year to date, the stock is now up 12%, soundly outperforming the S&P 500, which has fallen 22% over the same period.
What's all the excitement about? Should you buy the stock as it is climbing, or is Amgen's valuation due to fall back down? Let's take a look.
Morgan Stanley upgraded Amgen's stock last week, setting a price target of $279 for the company, noting that its weight-loss treatment, AMG 133, has been demonstrating positive results. That's about 20% higher than the $232 that Amgen's stock closed at the previous day. However, it's still in phase 1 trials and it's way too early to tell if the treatment may end up obtaining regulatory approval.
Source Fool.com