Amgen "outperform," target price reduced

07.12.07 - Credit Suisse

NEW YORK, December 7 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on Amgen Inc (AMGN), while reducing their estimates for the company. The target price has been reduced from $65 to $63.

In a research note published this morning, the analysts mention that the FDA is expected to recommend against Aranesp use in patients with breast cancer. Although the global sales estimates for Aranesp have been reduced by more than $500 million, Amgen may be able to limit the impact on its EPS through control of operating expenses, the analysts say. Amgen may be able to return to growth, provided data for denosumab is positive, Credit Suisse adds. The EPS estimate for 2008 has been reduced from $4.11 to $3.98.