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

January 8, 2014 8:00 AM EST
Get Alerts AMGN Hot Sheet
Price: $154.80 -0.85%

Rating Summary:
    18 Buy, 14 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
Trade AMGN Now!
Join SI Premium – FREE
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.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, New Coverage

Related Entities

Nomura, Dividend, Definitive Agreement

Add Your Comment