RBC Capital lifted its rating for Amgen (NASDAQ:AMGN) to Outperform from Sector Perform in a note Tuesday, raising the price target to $300 from $256 per share.

Analysts at the firm said the company’s pipeline optionality, as well as its 2024 catalyst setup, positions it well to move higher.

“We believe the 2024 catalyst set-up coupled with emerging clarity on out-year growth drivers is deserving of new credit as a diversifying commercial portfolio, new growth opportunities in the market, and pipeline optionality are better harmonized for sustainable share appreciation,” explained the analysts.

“Our Outperform rating is anchored by AMGN’s now improving position of stability and diminishing forward uncertainty, with the HZNP deal integration underway, new sources of pull-through from Tepezza and the rare disease portfolio, and an eye on prioritizing and advancing a deliberate pipeline while maintain BD flexibility,” they added.

RBC believes that new growth segments are key to the AMGN story as longer-term drivers of value, while its “sounder fundamental outlook” and optionality from the balance of internal development and M&A continue the company’s quest for growth.

AMGN shares are up over 1% premarket at $276 per share, putting it on track to open at its highest level since October 25.