Oscar Gruss Starts Amgen (AMGN) at Buy; Some Biomedical Tender(ness)
Tweet
Share
E-mailGet Alerts AMGN Hot Sheet
Price: $419.38 +1.00%
Rating Summary:
20 Buy, 18 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
20 Buy, 18 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Join SI Premium – FREE
Oscar Gruss initiates coverage on Amgen (NASDAQ: AMGN) with a Buy. PT $61.00.
Oscar analyst said, "On 11/7/11, the Company announced a Dutch Auction to repurchase $5.0B of its common shares at a single price in a $54.00-$60.00 range (~9.5%-10.6% of S/O will be repurchased if the offer is fully subscribed). Our target price is ~8% above the current AMGN price, reflecting the accretive nature of the share buyback. The price target yields a 23%-31% annualized return if reached using our short 2-3 month post-tender time horizon. We believe longer term shareholders are unlikely to tender shares, or if they do, they will tender at the top end of the price range. AMGN plans to purchase 83.3M-92.6M�shares (assuming the greenshoe option is not exercised); we estimate the share buyback should be 7%-8% and 8%-9% accretive to consensus preannouncement CY12E EPS and CFPS, respectively."
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 $56.59 yesterday.
Oscar analyst said, "On 11/7/11, the Company announced a Dutch Auction to repurchase $5.0B of its common shares at a single price in a $54.00-$60.00 range (~9.5%-10.6% of S/O will be repurchased if the offer is fully subscribed). Our target price is ~8% above the current AMGN price, reflecting the accretive nature of the share buyback. The price target yields a 23%-31% annualized return if reached using our short 2-3 month post-tender time horizon. We believe longer term shareholders are unlikely to tender shares, or if they do, they will tender at the top end of the price range. AMGN plans to purchase 83.3M-92.6M�shares (assuming the greenshoe option is not exercised); we estimate the share buyback should be 7%-8% and 8%-9% accretive to consensus preannouncement CY12E EPS and CFPS, respectively."
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 $56.59 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Amgen (AMGN) PT Raised to $380 at Barclays
- ThinkEquity Starts Deep Isolation Nuclear (DBHL) at Buy
- H.C. Wainwright Assumes Alpha Compute Corp. (ALP) at Neutral
Create E-mail Alert Related Categories
New CoverageRelated Entities
Oscar Gruss, Stock BuybackSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
