Jefferies Reports Encouraging Beat On Amgen

According to Jefferies, Amgen AMGN saw a slight 1Q EPS beat. Jefferies said that Slight beat on 1Q top- and bottom-line but mix of good and bad (encouraging XGEVA sales, but disappointing Epogen sales; higher OpEx, but lower tax rate benefit). “AMGN maintains FY11 guidance and to detail its capital allocation plans at today's Business Review Meeting (8:00-12:00 pm). Our PT of $70 is based on a P/E multiple of ~13x (current P/E for peers) to our 2012 EPS forecast of $5.50, discounted back at 15%. Risks associated with Amgen include, but are not limited to regulatory delays/clinical failure/slower commercial uptake for denosumab.” Amgen closed yesterday at $56.18.