Amgen upgraded to cautious Buy on strong pipeline and growth potential despite recent stock weakness.

Amgen Inc. has been upgraded to a cautious Buy due to its improved fundamentals, diversified drug pipeline, and attractive risk/reward profile despite recent underperformance against the S&P 500. Key growth drivers include drugs like Imdelltra, Uplizna, Tepezza, Repatha, and the promising Maritide, which help offset declines from older drugs like Prolia. The company's strong R&D pipeline, margin expansion, and capital investments support long-term growth, though investors should monitor its high debt and capital expenditure levels. Amgen's shares currently trade near the lower end of a long-term range, with potential upside as defensive healthcare stocks gain favor amid changing market conditions.