B of A Securities Maintains Amgen (AMGN) Underperform Recommendation

B of A Securities reiterated an 'Underperform' rating on Amgen (AMGN) on September 26, 2025, despite an average analyst price target of $319.76 indicating a 17.12% upside from its $273.02 closing price. This cautious stance is supported by a projected 17.47% annual revenue decrease to $28,817MM. While total institutional shares increased by 3.87% and the put/call ratio is bullish at 0.85, several major investors, including Capital International and Vanguard funds, decreased their portfolio allocation to AMGN, signaling a potential reduction in relative conviction.

Analysis

Amgen (AMGN) presents a conflicted investment profile, characterized by a stark divergence between a specific bearish analyst view and broader market sentiment indicators. B of A Securities has maintained its 'Underperform' recommendation, a stance likely informed by the projected 17.47% annual revenue decline to $28,817MM. This negative fundamental outlook contrasts sharply with the average analyst price target, which suggests a 17.12% upside from the recent closing price of $273.02, and a bullish options market indicated by a 0.85 put/call ratio. Institutional ownership data reveals further nuance; while total shares held by institutions increased by 3.87%, the number of funds with positions decreased by 1.93%. More significantly, several large holders, including Capital International Investors and multiple Vanguard funds, reduced their portfolio allocation to AMGN by as much as 18.83%, even while marginally increasing their share counts. This reduction in allocation suggests a potential decrease in relative conviction or the stock's underperformance against a broader portfolio, a more telling signal than the headline increase in shares.

Key Decisions for Investors

• Investors should weigh the B of A 'Underperform' rating and the projected 17.47% revenue decline against the consensus price target upside and bullish options sentiment, suggesting a cautious or neutral stance may be prudent.
• The significant decrease in portfolio allocation by major funds like Vanguard and Capital World, despite a net increase in total institutional shares, should be treated as a potential red flag signaling waning conviction that warrants further due diligence.
• Given the wide dispersion in analyst forecasts, ranging from $181.80 to $425.25, investors should scrutinize the assumptions underpinning bullish price targets to determine if they adequately account for the expected top-line contraction.