Amgen "reduce," target price reduced

06.08.07 - UBS

NEW YORK, August 6 (newratings.com) - Analysts at UBS maintain their "reduce" rating on Amgen Inc (AMGN), while revising their estimates for the company. The target price has been reduced from $54 to $50.

In a research note published this morning, the analysts mention that the company?s US Aranesp revenues are expected to be lower than was previously expected in 2007 and 2008 due to the recent CMS NCD. The impact of the weakness in Amgen?s revenues on Amgen?s performance is likely to be offset partly by cost reductions during the same period, the analysts say. The EPS estimate for 2007 has been raised from $4.04 to $4.07. The EPS estimate for 2008 has been reduced from $4.24 to $4.04.