Market Overview

Bernstein Says Onyx Acquisition Could Boost Amgen Earnings 25% by 2020

Related ONXX
How to Prepare for the New Year
UPDATE: Stifel Terminates Coverage on Onyx Pharmaceuticals Following Acquisition by Amgen
Related AMGN
Stocks Hitting 52-Week Highs
Biotech ETFs Hitting New Highs On Takeover News (FBT, PBE, ITMN)
The Tech Industry is Vanishing Before Our Eyes (Fox Business)

Shares of Amgen (NASDAQ: AMGN) rose nearly 7 percent Wednesday while Onyx Pharma (NASDAQ: ONXX) shares fell about percent following a mid-day Reuters report Amgen is now expected to pay $130/share in its acquisition of Onyx Pharmaceuticals (NASDAQ: ONXX).

RBC analyst Michael Yee is commenting on the rumor Thursday morning, suggesting more near-term gains could come if the acquisition goes through. Yee sees 0-6 percent added to Amgen EPS in 2014 on profit potential, price-to-earnings expansion, and interest from "growth investors." Further EPS gains of 5-8 percent could eventually be realized through overlapping expense cuts.

While investors in Amgen are taking profits Thursday morning, shares of Onyx are trading about $0.05 higher.

Posted-In: Analyst Color News Rumors M&A Analyst Ratings

 

Related Articles (AMGN + ONXX)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters