Yaron Werber of Citi maintained his "buy" rating on Amgen Inc (NASDAQ: AMGN). The target price for AMGN is set to $64.00.
According to Citi, the market has overlooked competition to Amgen’s Epogen and Aranesp from Hematide. Citi expects this drug to pose threat to AMGN's base business from late 2011. According to Citi, Affymax may price Hematide at roughly 25% discount in order to capture share in the dialysis and pre-dialysis markets. Hematide has an edge over Epogen/Aranesp in terms of pricing and dosing, CIti said.
According to CIti, every 5% loss in Epogen sales in the dialysis sector in 2012 due to Hematide may lead to a $0.08 reduction in Amgen's EPS for the year. Similarly, every 10%-20% decline in Aranesp sales in pre-dialysis/dialysis will reduce AMGN's EPS by $0.01/$0.03, Citi added.
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Amgen (NasdaqNM: AMGN) closed yesterday at $56.06. So far the stock has hit a 52-week low of $44.96 and 52-week high of $64.76. Amgen stock has been showing support around 55.19 and resistance in the 56.67 range. Technical indicators for the stock are Bearish and S&P gives AMGN a positive 4 STAR (out of 5...(Click the story link or go to http://www.marketintelligencecenter.com for the full story)
Theflyonthewall.com is Wall Street's specialist in breaking equity news. Veteran traders build a proprietary feed of news that's faster and more relevant than any other source. Try us for free and discover for yourself.
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By Dr. George Huang
It's hard to find winners in the nightmarish health care reform bill passed by the House...
The bill doesn't address the major complaint of the American consumers – soaring costs. In fact, health insurers already predict skyrocketing premiums next year. Instead, the bill forces most employers to provide health care coverage or pay a tax penalty of up to 8% of payroll. The added cost will crush many small businesses.[More...]
ImmunoGen, Inc. (NASDAQ:IMGN) has announced that Amgen, Inc. (NASDAQ:AMGN)Inc has licensed the exclusive right to use ImmunoGen’s maytansinoid Targeted Antibody Payload (TAP) technology for the development of anticancer therapeutics to an undisclosed ...
Traders watch earnings announcementskeenly, as changes in a company’s financials can be a good indication whether a company is on the right track, or headed the wrong way.
Altus Pharmaceuticals Inc. (ALTU) is scheduled to release its earnings results Monday. The company currently has an earnings per share ratio (EPS trailing twelve months) of -2.33 and investors are hoping to see that number change. Let’s take a look at the performance of the stock since its previous earnings release.
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In the past three months, the stock has posted a -83.87% loss in terms of stock price. Over the same period, the Biotechnology industry group has returned a combined -1.07% loss.
So the eyes of investors turn to this new round of earnings.
Now, good earnings don’t always lead to higher stock prices, but keeping up on earnings is still a vital part of your fundamental stock analysis. Also note that companies often change earnings dates, so you should double-check them often.
When looking at earnings, it’s very helpful to see how stocks compare to others in its industry group. And even though two stocks may not be direct competitors, many analysts and institutional investors still compare them and evaluate them relative to other stocks in their group.
ALTU is in the Biotechnology industry group where it competes for investor dollars with companies like La Jolla Pharmaceutical Co. (LJPC), which released its earnings on 10/30 and last reported a 89.96% gain in quarter-over-quarter EPS.
Another industry peer, Senesco Technologies Inc. (SNT) released its earnings on 09/29 and last reported a 12.29% gain in QOQ EPS.
Amgen Inc.(AMGN) is the stock with the biggest market cap in the Biotechnology industry at $56.82B. It closed yesterday at $56.14
To better understand how to evaluate earnings announcements and the affect they have on your portfolio, be sure to read Earnings Announcements and EPS.
Oppenheimer gave the Biotechnology industry some bad news as it announced a downgrade on one of its stocks.
Cadence Pharmaceuticals Inc. (CADX) [Chart - News - Analysis] was downgraded from Outperform » Perform on 11/16/2009---a negative sign for the stock that investors will have to endure. FYI, Oppenheimer uses the following rating scale when analyzing stocks: Outperform, Perform, Underperform.
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Cadence Pharmaceuticals Inc. has an average analyst recommendation score of 1.8 and competes for investment dollars with Celgene Corporation (CELG) [Chart - News - Analysis] and Amgen Inc. (AMGN) [Chart - News - Analysis]---two other stocks in the Biotechnology industry that have average analyst recommendation scores of 2.0 and 1.9 respectively.
Analyst recommendations are averaged and scored using the following rating scale:
- 1.0 = Strong Buy
- 2.0 = Buy
- 3.0 = Hold
- 4.0 = Sell
- 5.0 = Strong Sell
Why are Upgrades and Initiations Good and Downgrades Bad?
One event that is almost certain to get a reaction from Wall Street is an analyst upgrade or downgrade. Everyone is looking for an edge in the stock market, and quite often, traders turn to stock analysts to get that edge.
Upgrades and coverage initiations are typically good for stocks because they show that analysts either believe that the stock is going to perform better in the future or that the stock is worth covering and providing analysis on.
Downgrades are typically bad for stocks because they show that analysts believe that the stock is going to perform worse in the future.
A stock analysts is a person---typically employed by a large bank, investment firm or analysis company---who devotes his/her life to learning and making predictions about a company and its future performance.
Stock analysts sift through company reports and filings, talk to company management, probe customers and competitors and basically do whatever they can to find out if a company is healthy and growing or sick and shrinking. Because this is incredibly demanding work, stock analysts typically only monitor one or two companies at a time.
Investors watch earnings releaseskeenly, as changes in a company’s performance can be a good indication whether a company is on the right track, or headed the wrong way.
Transcept Pharmaceuticals, Inc. (TSPT) is scheduled to release its earnings results Thursday. The company currently has an earnings per share ratio (EPS trailing twelve months) of -3.18 and investors are hoping to see that number change. Let’s take a look at the performance of the stock since its previous earnings release.
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In the past three months, the stock has posted a -45.36% loss in terms of stock price. Over the same period, the Biotechnology industry group has returned a combined - .65% loss.
So the eyes of investors turn to this new round of earnings.
Now, good earnings don’t always lead to higher stock prices, but keeping up on earnings is still a vital part of your fundamental stock analysis. Also note that companies often change earnings dates, so you should double-check them often.
When looking at earnings, it’s very helpful to see how stocks compare to others in its industry group. And even though two stocks may not be direct competitors, many analysts and institutional investors still compare them and evaluate them relative to other stocks in their group.
TSPT is in the Biotechnology industry group where it competes for investor dollars with companies like Cerus Corporation (CERS), which released its earnings on 10/29 and last reported a 32.66% gain in quarter-over-quarter EPS.
Another industry peer, ZIOPHARM Oncology, Inc. (ZIOP) released its earnings on 10/27 and last reported a 63.23% gain in QOQ EPS.
Amgen Inc.(AMGN) is the stock with the biggest market cap in the Biotechnology industry at $55.66B. It closed yesterday at $54.78
To better understand how to evaluate earnings announcements and the affect they have on your portfolio, be sure to read Earnings Announcements and EPS.
Companies featured in this segment: Pacific Gas & Electric Company (NYSE:PCG), Ameren Corporation (NYSE:AEE), Dow Chemical Company (NYSE:DOW), Corning Incorporated (NYSE:GLW), and Amgen Incorporated (NASDAQ:AMGN)
Companies featured in this segment: General Motors Corporation (NYSE:GM), Northfield Laboratories (NASDAQ:NFLD), Mitsui and Company Limited (NASDAQ:MITSY), Alkermes Incorporated (NASDAQ:ALKS), Shire plc (NASDAQ:SHPGY), ImmunoGen Incorporated (NASDAQ:IMGN), Schering-Plough (NYSE:SGP), BioMed Realty Trust Incorporated (NYSE:BMR), Amgen (NASDAQ:AMGN), Genzyme (NASDAQ:GENZ), Murphy Oil Corporation (NYSE:MUR), Centrica plc (OTC:CPYYY), Electric Power Development Company Limited (TYO:9513), and Electricite de France SA (EPA:EDF)
Companies featured in this segment: ABB (NYSE:ABB), Krishak Bharati Cooperative Limited, KBR (NYSE:KBR), Bayernoil Raffineriegesellschaft mbH, Jacobs Engineering Group (NYSE:JEC), Honeywell (NYSE:HON), Enel SpA (BIT:ENEL), Endesa SA (MCE:ELE), Acciona SA (MCE:ANA), Verenium Corporation (NASDAQ:VRNM), BP plc (NYSE:BP), Amgen Incorporated (NASDAQ:AMGN), Foster Wheeler Energy Limited, and Foster Wheeler AG (NASDAQ:FWLT).