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
3 ETFs To Watch Out For On Biotech Earnings
'Poor Quality' Amgen Earnings Beat Doesn't Impress These Two Wall Street Analysts

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.

Latest Ratings for ONXX

Nov 2013Stifel NicolausTerminates
Aug 2013Maxim GroupDowngradesBuyHold
Aug 2013Summer StreetDowngradesBuyNeutral

View More Analyst Ratings for ONXX
View the Latest Analyst Ratings

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


Related Articles (AMGN + ONXX)

View Comments and Join the Discussion!