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(Reuters) - Amgen Inc (AMGN.O), the world's largest biotechnology company, has plenty of room to grow despite a 43 percent jump in its share price over the past year, thanks to cost cuts, newer drugs and hefty share buybacks, Barron's said.
Share gains for the company have been due in part to pledges by Chief Executive Officer Robert Bradway, since he took the helm of the California biotech in May 2012, to return 60 percent of adjusted net income to shareholders through dividends and stock buybacks, Barron's said.
"The shares could rise another 20 percent to $120, largely from staying the course," Barron's said, noting that Amgen has approved $12 billion in stock buybacks, initiated a dividend and raised it twice in the past two years.
Reporting by Ransdell Pierson; Editing by Theodore d'Afflisio