Amgen "neutral," target price reduced

25.04.08 - Robert W. Baird

NEW YORK, April 25 (newratings.com) - Analysts at Robert W Baird reiterate their "neutral" rating on Amgen Inc (AMGN), while revising their estimates for the company. The target price has been reduced from $53 to $50.

In a research note published this morning, the analysts mention that the company has reported its 1Q EPS ahead of the estimates and the consensus, primarily due to R&D savings, higher-than-expected Enbrel revenues and a number of onetime and currency benefits. The analysts add, however, that when considering only demand-driven revenues, Amgen?s 1Q results constitute a substantial expectations miss. The EPS estimates for 2009 and 2010 have been reduced from $4.53 to $4.49 and from $5.03 to $4.99, respectively. The EPS estimate for 2011 has been raised from $5.43 to $5.45.