Amgen Price Target Raised by Various Analysts
Analysts were upbeat following Amgen's (NASDAQ: AMGN) solid second quarter results after the company reported after the bell on Tuesday.
Credit Suisse raised its price target and earnings target for Amgen. This came as a result of Amgen offering a higher guidance range (Non-GAAP EPS: $8.20 to $8.40 versus $7.90 to $8.20 previously).
Credit Suisse stated in its report to clients:
“We have made minor changes to our model to reflect the restructuring initiative. Our increased TP of $135 (previously $125) is based on a ~15.3x multiple on our new '15 EPS of $8.83, representing an unchanged parity to the '15 S&P 500 multiple.” Credit Suisse has a neutral rating on the company, and continues to reiterate that rating despite the positive guidance.”
Citigroup seemed a little more upbeat in its note to clients (Citigroup has a buy rating on Amgen):
“We have updated our model to reflect a lower tax rate and conservative OpEx implied in FY14 guidance and we have raised our: 1) Prolia estimates due to stronger demand, and 2) Neulasta, Neupogen, Epogen estimates as we expect a slower onset of competition in the US/EU. Our new TP is $159 (+$4) based on 17x'15 EPS.”
However, to round it all off, Jefferies offered a slightly more conservative price target:
“Our PT of $142 is based on: (1) P/E multiple of ~16x (2015 P/E for big pharma) to our 2015 EPS forecast of $9.25, discounting at 9%, and (2) sum-of-the parts NPV analysis. Risks associated with Amgen include pricing pressure, competition, and regulatory delays/failure of evolocumab (AMG-145).”
Currently, Amgen is trading at $129.78 (Wednesday trading session), depending on who you want to listen to, the upside varies.
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