Amgen "buy," target price reduced

15.05.07 - Stifel Nicolaus

NEW YORK, May 15 (newratings.com) - Analysts at Stifel Nicolaus & Company maintain their "buy" rating on Amgen Inc (AMGN), while reducing their estimates for the company. The target price has been reduced from $68 to $64.

In a research note published this morning, the analysts mention that the CMS has proposed a national coverage decision (NCD) for a reimbursement policy for ESAs for "non-renal" uses. Under the proposed NCD, the CMS would cease to cover ESA use for the treatment of anemia in some types of cancer, the analysts say. The EPS estimates for FY07 and FY08 have been reduced from $4.31 to $4.28 and from $4.71 to $4.42, respectively.