פתחים סמויים מהעין

AMGN Barron's Online highlights Amgen, suggesting it is a bargain (55.91 )

Barron's Online highlights Amgen, saying it is a bargain. Despite better-than-expected quarterly profits, shares of Amgen have dropped steadily since early Feb, drastically lagging its peers and the broader market. Investors worry that Amgen has grown too big and its drug pipeline too thin to generate strong earnings growth. To some, the co now resembles a stodgy pharma co. But looks can be deceiving. Down 20% from its price 12 months ago, Amgen trades at its lowest multiple in 5 years. That could attract investors seeking safety from rising interest rates, especially as the co expands markets for its top-selling drugs and steals business from rivals. While big drug co's also offer a haven from higher rates, their long-term-profit growth averages 14% a year, far below Amgen's projected 20% growth rate. According to the article, Amgen could even beat Wall Street's projections for 2004. "The near term is in the bag," says Eric Schmidt, an analyst with SG Cowen. Still, Amgen's share price doesn't appear to anticipate any of that good news. At 56, Amgen trades at 22x projected profits over the next 4 qrtrs, or about a 17% discount to the biotech industry, compared with a 5-year median P/E multiple of 39.4x forward earnings. The stock also commands a 30% premium to the S&P 500 index, but that's near a 5-year low. Historically Amgen fetches a whopping 80% premium to the market's multiple.