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Jefferies Raises PT On Amgen, Pricing Pressure Factored IN

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Analysts at Jefferies on Friday, March 28, 2014, released a new price target regarding Amgen (NASDAQ: AMGN).

Equity analyst Eun K. Yang at Jefferies led the research and raised their price target from $138.00 to $145.00 per share.

From the 48 cardiologists' surveys taken, Jefferies is increasing its United States and European Union sales estimates for 2017-2020 by 22 to 49 percent. According to Jefferies, this new estimate reflects its broad use in hypercholesterolemia.

Jefferies now estimates sales to be at approximately $1.7 billion in 2019, this is up $0.5 billion from its estimate of $1.2 billion.

The price target issued by Jefferies is based on:

• P/E multiple of ~16x (2015 P/E for big pharma) to our 2015 EPS forecast of $9.26, discounting at 10 percent. • Sum-of-the parts NPV analysis. Risks associated with Amgen include pricing pressure, competition and regulatory delays/failure of evolocumab (AMG-145)

Shares of Amgen are currently trading at $120.55 as of Friday, March 28, 2014.

Posted-In: Eun K. Yang JefferiesAnalyst Color Price Target Analyst Ratings

 

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