11:29 AM EDT, 10/14/2024 (MT Newswires) -- Amgen's ( AMGN ) potential obesity and eczema drugs are facing a competitive environment that has muted any upside potential, Truist Securities said in a note Monday.

The firm's analysts said investors will be interested in the upcoming MariTide phase 2 data readout in obesity, which is expected to be consistent with prior data. "Given this is a [phase] 2 asset and the competitive landscape, we believe that current levels bake in opportunity," analysts led by Srikripa Devarakonda wrote.

If MariTide is found to be better than Eli Lilly's (LLY) Zepbound, Amgen ( AMGN ) could see an upside of up to about $40 per share, according to the note. But if safety is worse than expected, the stock could be down 10% to 20%, analysts added.

For rocatinlimab, Truist said the antibody has demonstrated activity in atopic dermatitis with additional readouts over the next six to 12 months, but Amgen ( AMGN ) is facing an "extremely competitive" environment.

Truist Securities downgraded Amgen ( AMGN ) to hold from buy, but raised its price target to $333 from $320.

Price: 325.43, Change: -2.92, Percent Change: -0.89