Amgen "buy," target price reduced

11.05.07 - Montgomery & Co

NEW YORK, May 11 (newratings.com) - Analysts at Montgomery & Co maintain their "buy" rating on Amgen Inc (AMGN), while reducing their estimates for the company. The target price has been reduced from $100 to $82.

In a research note published this morning, the analysts mention that the FDA has recently laid further restrictions in the usage of EPO agents in oncology settings. This is likely to lower the usage of Aranesp and adversely affect Amgen?s revenues in 2008, the analysts say. The revenue estimate for 2008 has been reduced from $16.4 billion to $13.8 billion. The EPS estimate for 4Q07 has been reduced from $1.04 to $0.76.