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Nomura Securities Starts Amgen (AMGN) at Neutral, $131 PT

January 8, 2014 8:00 AM EST Send to a Friend
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Price: $123.31 +0.54%

Rating Summary:
    14 Buy, 14 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 1 | Down: 0 | New: 0
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Nomura Securities initiates coverage on Amgen (NASDAQ: AMGN) with a Neutral. PT $131.00.

Analyst Ian Somaiya comments: "Amgen's is the world's largest biotechnology company by revenue, with 2013E sales of $18.4bn spread across three main areas of focus: chronic kidney disease (CKD), cancer, and autoimmune disease. We believe a stable base business with minimal pipeline value and potential growth in Amgen's dividend (~25% payout ratio) has attracted generalists and income-oriented investors—providing a floor for AMGN shares. However, the recent acquisition of Onyx reintroduces near-term binary event risk to investors, while our deep dive of Amgen's Phase III pipeline suggests few blockbuster opportunities. Our $131 target price is based on DCF analysis of 2015-20E free cash flow, with a 2% terminal growth rate applied to our 2020E free cash flow estimate. FY13E EPS at $7.51; FY14E EPS at $8.89."

For an analyst ratings summary and ratings history on Amgen click here. For more ratings news on Amgen click here.

Shares of Amgen closed at $116.43 yesterday.




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