Leerink Swann Downgrades Amgen (AMGN) to 'Market Perform' Until Key Catalysts Draw Closer
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Price: $417.39 +0.53%
Rating Summary:
20 Buy, 18 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
Rating Summary:
20 Buy, 18 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
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Leerink Swann downgraded Amgen (NASDAQ: AMGN) to Market Perform.
Leerink analyst says, "AMGN has been a relatively strong performer in a difficult biotech tape. But as we look forward to 2012, we see the uncertainty of perhaps another year with a challenging macroeconomic environment. As reimbursement pressure on mature and less differentiated drugs increases, we would prefer to wait for the company's next round of transformational assets to draw near. AMGN does have attractive Phase II clinical candidates, but it has a light Phase III pipeline relative to pharma peers. As we adjust our longer-term estimates to reflect more conservative expectations on mature franchises, our valuation falls to low/mid-$60s. While we don't see much downside from current levels, we also do not see the meaningful transformative catalysts emerging until 2013/2014. Our view is that AMGN is turning into a primary capital allocation story over 2012 before it can become a pipeline/ transformational story in late 2013/ early 2014, the latter being our own preference in this challenging climate."
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 $57.86 yesterday.
Leerink analyst says, "AMGN has been a relatively strong performer in a difficult biotech tape. But as we look forward to 2012, we see the uncertainty of perhaps another year with a challenging macroeconomic environment. As reimbursement pressure on mature and less differentiated drugs increases, we would prefer to wait for the company's next round of transformational assets to draw near. AMGN does have attractive Phase II clinical candidates, but it has a light Phase III pipeline relative to pharma peers. As we adjust our longer-term estimates to reflect more conservative expectations on mature franchises, our valuation falls to low/mid-$60s. While we don't see much downside from current levels, we also do not see the meaningful transformative catalysts emerging until 2013/2014. Our view is that AMGN is turning into a primary capital allocation story over 2012 before it can become a pipeline/ transformational story in late 2013/ early 2014, the latter being our own preference in this challenging climate."
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 $57.86 yesterday.
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