Amgen "outperform," target price reduced

12.03.07 - Robert W. Baird

NEW YORK, March 12 (newratings.com) - Analysts at Robert W Baird reiterate their "outperform" rating on Amgen Inc (AMGN), while reducing their estimates for the company. The target price has been reduced from $90 to $80.

In a research note published this morning, the analysts mention that going forward, Aranesp's sales are likely to be adversely affected by the FDA's decision to reduce the hemoglobin level, following which the drug's use in oncology has to be withheld. The downward revision in the EPS estimates reflects the FDA decision and the unfavourable result of Aranesp's off-label use in the treatment of the anemia of cancer indication, the analysts say. The EPS estimates for 2007 and 2008 have been reduced from $4.43 to $4.29 and from $5.01 to $4.69, respectively.