Amgen "sell," estimates raised

13.09.07 - Lazard Capital Markets

NEW YORK, September 13 (newratings.com) - Analysts at Lazard Capital maintain their "sell" rating on Amgen (AMGN), while raising their estimates for the company. The target price is set to $46.

In a research note published yesterday, the analysts mention that by a fourteen-to-five vote, the FDA advisory panel has voted against setting 11gm/dL as the maximum hemoglobin threshold. The market sees this as a win for Amgen and it seems that the company has been able to just steer clear from a worst-case scenario, the analysts say. The FDA is likely to limit the Epogen labeling, keeping in mind the panel discussion, which should result in a lowering of Epogen usage, Lazard Capital adds. The EPS estimates for 2007 and 2008 have been raised from $4.20 to $4.21 and from $4.29 to $4.30, respectively.